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Ivanhoe Company expects to have a cash balance of $38,700 on January 1, 2022. Relevant monthly budget data for the first 2 months of 2022
Ivanhoe Company expects to have a cash balance of $38,700 on January 1, 2022. Relevant monthly budget data for the first 2 months of 2022 are as follows, Collections from customers: January $73,100. February $129.000 Payments for direct materials: January $43,000. February $64,500 Direct labor: January $25,800. February $38,700. Wages are paid in the month they are incurred. Manufacturing overhead: January $18,060. February $21.500. These costs include depreciation of $1.290 per month. All other overhead costs are paid as incurred. Selling and administrative expenses: Janiary $12,900, February 517.200. These costs are exclusive of depreciation. They are paid as incurred Sales of marketable securities in January are expected to realize $10,320 in cash. Ivanhoe Company has a line of credit at a local bankthat enables it to borrow up to $21.500. The company wants to maintain a minimum monthly cash balance of $17.200, Prepare a cash budget for January and February
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