Question 12 View Policies Current Attempt in Progress Danner Company expects to have a cash balance of $48,600 on January 1, 2020. Relevant monthly budget data for the first 2 months of 2020 are as follows. Collections from customers: January $91,800, February $162,000. Payments for direct materials: January $54,000, February $81,000. Direct labor: January $32,400, February $48,600. Wages are paid in the month they are incurred. Manufacturing overhead: January $22,680, February $27,000. These costs include depreciation of $1,620 per month. All other overhead costs are paid as incurred. Selling and administrative expenses: January $16,200, February $21,600. These costs are exclusive of depreciation. They are paid as incurred. Sales of marketable securities in January are expected to realize $12,960 in cash. Danner Company has a line of credit at a local bank that enables it to borrow up to $27,000. The company wants to maintain a minimum monthly cash balance of $21,600. Prepare a cash budget for January and February DANNER COMPANY Cash Budget For the Two Months Ending February 28, 2020 January February Beginning Cash Balance 48600 Add : Receipts Collections from Customers 91800 16200 Sale of Marketable Securities 12960 Total Receipts 104760 16200 Total Available Cash Less : Disbursements Direct Materials Direct Labor Manufacturing Overhead Selling and Administrative Expenses Total Disbursements Excess (Deficiency) of Available Cash Over Cash Disbursements Excess (Deficiency) of Available Cash Over Cash Disbursements Add : Borrowings Less : Repayments Ending Cash Balance