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Martin Company expects to have a cash balance of $ 133,600 on January 1, 2020. Relevant monthly budget data for the first 2 months of

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Martin Company expects to have a cash balance of $ 133,600 on January 1, 2020. Relevant monthly budget data for the first 2 months of 2020 are as follows: . Collections from customers: January $ 245,700, February $441,600. Payments for direct materials: January $ 153,600, February $ 248,500 Direct labor: January $ 90,000, February $ 132,700. Wages are paid in the month they are incurred. Manufacturing overhead: January $ 62,700, February $ 73,500. These costs include depreciation of $ 4,900 per month. All other overhead costs are paid as incurred. Selling and administrative expenses: January $ 45,400. February $ 60,900. These costs are exclusive of depreciation. They are paid as incurred Sales of marketable securities in January are expected to realize $ 36,200 in cash. Martin Company has a line of credit at the local bank that enables it to borrow up to $ 74,300. The company wants to maintain a minimum monthly cash balance of $ 61,000 . . (a) Your answer is correct. Prepare a cash budget for January and February Martin Company Cash Budget For the Months Ending February 2020 January Feb Beginning Cash Balance 133600 Add Receipts Collections from Customers 245700 Sale of Securities 36200 Total Receipts 281900 Total Available Cash 415500 Less Disbursements Direct Materials 153600 Direct Labor 90000 i Manufacturing Overhead 57800 i Selling and Administrative Expenses 45400 i Total Disbursements 346800 Excess (Deficiency) of Available Cash over Cash Disbursements 68700 Financing Less Repayments including interest Add i Borrowings Ending Cash Balance $ 68700 $ (61) 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: $ 381,000 Payments for direct materials: $ 209,400 Direct labor: Wages paid in March $ 117,700 Manufacturing overhead: $ 65,700. This includes the monthly depreciation of $ 4,900. Selling and administrative expenses: $ 52,000. This cost is exclusive of depreciation Marketable securities of $ 52,200 can be sold it 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 Martin Company Cash Budget For the Month Ending March 2020 $ .

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