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: $382,100 Payments for direct materials: $213,600 Direct labor: Wages paid in March $117,100 Manufacturing overhead: $64,400. This includes the monthly depreciation of $5,000. Selling and administrative expenses: $51,500. This cost is exclusive of depreciation. Marketable securities of $53,700 can be sold if needed for additional cash. Prepare a cash budget for March assuming that the company does not sell the marketable securities. Los DuuYCL For the Month Ending March 2020 Beginning Cash Balance 61200 Add 4) : Receipts Collections from Customers 382100 Sale of Securities Total Receipts 382100 Total Available Cash 443300 Less Disbursements Direct Materials 213600 Direct Labor 117100 Manufacturing Overhead 59400 Selling and Administrative Expenses 51500 Total Disbursements 441600 Excess (Deficiency) of Available Cash over Cash Disbursements 1700 Financing Add Borrowings 12600 Less Repayments including Interest 0 Ending Cash Balance 14300 Your answer is correct. What is the maximum amount the company can borrow during March? Maximum amount the company can borrow 12600 Does this provide the company with an adequate ending cash balance? Borrowing this amount does not provide 4 Martin Company with their minimum ending cash balance. e Textbook and Media Attempts: 1 of 5 used (63) X Your answer is incorrect. How much does the company need to borrow if the marketable securities are sold? Company needs to borrow $ 1700