Exercise 23-14

Danner Company expects to have a cash balance of $59,355 on January 1, 2017. Relevant monthly budget data for the first 2 months of 2017 are as follows:

Collections from customers: January $112,115, February $197,850. Payments for direct materials: January $65,950, February $98,925. Direct labor: January $39,570, February $59,355. Wages are paid in the month they are incurred. Manufacturing overhead: January $27,699, February $32,975. These costs include depreciation of $1,978 per month. All other overhead costs are paid as incurred. Selling and administrative expenses: January $19,785, February $26,380. These costs are exclusive of depreciation. They are paid as incurred.

Sales of marketable securities in January are expected to realize $15,828 in cash. Danner Company has a line of credit at a local bank that enables it to borrow up to $32,975. The company wants to maintain a minimum monthly cash balance of $26,380. Prepare a cash budget for January and February. (Do not leave any answer field blank. Enter "0" for amounts.)

DANNER COMPANY Cash Budget For the Quarter Ending February 28, 2017 February 28, 2017 For the Two Months Ending February 28, 2017 January February Financing Manufacturing Overhead Repayments Sale of Marketable Securities Collections from Customers Direct Labor Disbursements Ending Cash Balance Selling and Administrative Expenses Excess (Deficiency) of Available Cash Over Cash Disbursements Receipts Total Available Cash Total Disbursements Total Receipts Beginning Cash Balance Borrowings Direct Materials $ $ Add Less : Financing Repayments Total Disbursements Manufacturing Overhead Receipts Total Receipts Disbursements Sale of Marketable Securities Direct Materials Beginning Cash Balance Selling and Administrative Expenses Borrowings Excess (Deficiency) of Available Cash Over Cash Disbursements Total Available Cash Collections from Customers Direct Labor Ending Cash Balance Direct Labor Direct Materials Borrowings Disbursements Beginning Cash Balance Receipts Collections from Customers Ending Cash Balance Repayments Total Available Cash Sale of Marketable Securities Excess (Deficiency) of Available Cash Over Cash Disbursements Financing Total Disbursements Total Receipts Manufacturing Overhead Selling and Administrative Expenses Sale of Marketable Securities Selling and Administrative Expenses Beginning Cash Balance Borrowings Direct Materials Manufacturing Overhead Disbursements Total Available Cash Total Receipts Total Disbursements Receipts Repayments Direct Labor Collections from Customers Ending Cash Balance Excess (Deficiency) of Available Cash Over Cash Disbursements Financing Receipts Excess (Deficiency) of Available Cash Over Cash Disbursements Direct Labor Selling and Administrative Expenses Total Receipts Financing Manufacturing Overhead Disbursements Total Available Cash Direct Materials Beginning Cash Balance Ending Cash Balance Repayments Borrowings Sale of Marketable Securities Collections from Customers Total Disbursements Beginning Cash Balance Financing Manufacturing Overhead Excess (Deficiency) of Available Cash Over Cash Disbursements Ending Cash Balance Direct Labor Receipts Direct Materials Total Available Cash Repayments Disbursements Total Disbursements Total Receipts Borrowings Collections from Customers Sale of Marketable Securities Selling and Administrative Expenses Add Less : Receipts Manufacturing Overhead Sale of Marketable Securities Direct Materials Ending Cash Balance Beginning Cash Balance Total Disbursements Disbursements Selling and Administrative Expenses Excess (Deficiency) of Available Cash Over Cash Disbursements Direct Labor Financing Total Receipts Repayments Borrowings Total Available Cash Collections from Customers Total Disbursements Direct Labor Ending Cash Balance Beginning Cash Balance Excess (Deficiency) of Available Cash Over Cash Disbursements Financing Manufacturing Overhead Total Available Cash Total Receipts Borrowings Collections from Customers Sale of Marketable Securities Direct Materials Disbursements Receipts Repayments Selling and Administrative Expenses Collections from Customers Borrowings Excess (Deficiency) of Available Cash Over Cash Disbursements Financing Total Receipts Beginning Cash Balance Total Disbursements Direct Labor Direct Materials Manufacturing Overhead Disbursements Ending Cash Balance Receipts Repayments Sale of Marketable Securities Selling and Administrative Expenses Total Available Cash Financing Borrowings Ending Cash Balance Disbursements Receipts Collections from Customers Sale of Marketable Securities Direct Labor Repayments Selling and Administrative Expenses Total Available Cash Manufacturing Overhead Total Disbursements Direct Materials Excess (Deficiency) of Available Cash Over Cash Disbursements Total Receipts Beginning Cash Balance Sale of Marketable Securities Selling and Administrative Expenses Financing Total Receipts Repayments Excess (Deficiency) of Available Cash Over Cash Disbursements Direct Labor Beginning Cash Balance Total Available Cash Receipts Disbursements Total Disbursements Borrowings Manufacturing Overhead Direct Materials Ending Cash Balance Collections from Customers Total Disbursements Financing Disbursements Sale of Marketable Securities Excess (Deficiency) of Available Cash Over Cash Disbursements Selling and Administrative Expenses Collections from Customers Beginning Cash Balance Total Available Cash Total Receipts Repayments Borrowings Direct Labor Direct Materials Ending Cash Balance Manufacturing Overhead Receipts Total Receipts Manufacturing Overhead Collections from Customers Receipts Disbursements Direct Labor Ending Cash Balance Selling and Administrative Expenses Repayments Beginning Cash Balance Sale of Marketable Securities Financing Total Available Cash Excess (Deficiency) of Available Cash Over Cash Disbursements Total Disbursements Borrowings Direct Materials Sale of Marketable Securities Direct Labor Financing Direct Materials Ending Cash Balance Excess (Deficiency) of Available Cash Over Cash Disbursements Manufacturing Overhead Disbursements Receipts Total Disbursements Repayments Selling and Administrative Expenses Total Available Cash Borrowings Total Receipts Beginning Cash Balance Collections from Customers Add Less : Excess (Deficiency) of Available Cash Over Cash Disbursements Ending Cash Balance Borrowings Receipts Total Available Cash Financing Sale of Marketable Securities Selling and Administrative Expenses Manufacturing Overhead Beginning Cash Balance Repayments Disbursements Total Disbursements Direct Materials Total Receipts Collections from Customers Direct Labor Add Less : Sale of Marketable Securities Financing Direct Labor Manufacturing Overhead Disbursements Selling and Administrative Expenses Excess (Deficiency) of Available Cash Over Cash Disbursements Receipts Total Available Cash Total Disbursements Direct Materials Repayments Ending Cash Balance Total Receipts Beginning Cash Balance Borrowings Collections from Customers Repayments Manufacturing Overhead Receipts Ending Cash Balance Beginning Cash Balance Borrowings Excess (Deficiency) of Available Cash Over Cash Disbursements Disbursements Collections from Customers Direct Materials Direct Labor Sale of Marketable Securities Financing Selling and Administrative Expenses Total Available Cash Total Disbursements Total Receipts $ $

LINK TO TEXT

Question Attempts: Unlimited SAVE FOR LATER SUBMIT ANSWER