Martin Company expects to have a cash balance of $136,500 on January 1, 2020. Relevant monthly budget data for the first 2 months of 2020 are as follows: Zoom Print. Cast.. Find.. More . Edit Collections from customers: January $243,700, February $428,400. Payments for direct materials: January $152,100, February $232,700 Direct labor: January $90,700, February $136,200. Wages are paid in the month they are incurred. Manufacturing overhead: January $62,600, February $74,900. These costs include depreciation of $5,100 per month. All other overhead costs are paid as incurred. Selling and administrative expenses: January $45,400, February $60,500. These costs are exclusive of depreciation. They are paid as incurred. Sales of marketable securities in January are expected to realize $35,700 in cash. Martin Company has a line of credit at the local bank that enables it to borrow up to $74,200. The company wants to maintain a minimum monthly cash balance of $59,400. . Settir Help Exit (a) Your answer is correct. Prepare a cash budget for January and February. Martin Company Cash Budget For the Months Ending February 2020 January F Beginning Cash Balance 136500 $ Add Receipts Collections from Customers 243700 Sale of Securities 35700 Total Receipts 279400 Total Available Cash 415900 Less Disbursements Martin Company's chief financial officer feels that it is important to have data for the entire quarter especially since their financial forecasts indicate some difficult economic periods in the coming year. March information has been budgeted as follows: Collections from customers: $370,700 Payments for direct materials: $ 202,900 Direct labor: Wages paid in March $115,100 Manufacturing overhead: $63,200. This includes the monthly depreciation of $5,100. Selling and administrative expenses: $51,900. This cost is exclusive of depreciation. Marketable securities of $49,800 can be sold if needed for additional cash. Prepare a cash budget for March assuming that the company does not sell the marketable securities. For the Months Ending February 2020 January February ilance $ 136500 $ 70200 eipts Customers 243700 428400 35700 0 279400 428400 sh 415900 498600 bursements 152100 232700 90700 i 136200 i verhead 57500 i 69800 i nistrative Expenses 45400 i 60500 i ants 345700 i 499200 i ) of Available Cash over Cash Disbursements 70200 -600 rowings 0 60000 ayments Including Interest 0 0 ice $ 70200 $ 59400 Martin Company's chief financial officer feels that it is important to have data for the entire quarter especially since their financial forecasts indicate some difficult economic periods in the coming year. March information has been budgeted as follows: Collections from customers: $370,700 Payments for direct materials: $ 202,900 Direct labor: Wages paid in March $115,100 Manufacturing overhead: $63,200. This includes the monthly depreciation of $5,100. Selling and administrative expenses: $51,900. This cost is exclusive of depreciation. Marketable securities of $49,800 can be sold if needed for additional cash. Prepare a cash budget for March assuming that the company does not sell the marketable securities. Martin Company Cash Budget For the Month Ending March 2020 $ 1 > > > $ e Textbook and Media Save for Later Attempts: 0 of 5 used Submit