Danner company expects to have a cash balance of $46,035 on january 1, 2017. relevant monthly budget data for the first 2 months of 2017 are as follows. collections from customers: january $86,955, february $153,450. payments for direct materials: january $51,150, february $76,725. direct labor: january $30,690, february $46,035. wages are paid in the month they are incurred. manufacturing overhead: january $21,483, february $25,575. these costs include depreciation of $1,535 per month. all other overhead costs are paid as incurred. selling and administrative expenses: january $15,345, february $20,460. these costs are exclusive of depreciation. they are paid as incurred. sales of marketable securities in january are expected to realize $12,276 in cash. danner company has a line of credit at a local bank that enables it to borrow up to $25,575. the company wants to maintain a minimum monthly cash balance of $20,460. prepare a cash budget for january and february. (do not leave any answer field blank. enter "0" for the amounts.)

Respuesta :

Given data: 
Transaction                            January           February 
Cash balance                          46,035
Collection from customers      86,955.00        152,450.00
less:
payment for direct materials    51,150.00         76,725.00
payment for direct labor           30,690.00        46,035.00
payment for mfg overhead       21,483.00      25,575.00
add back: depreciation               1,535.00        1,535.00 non cash transaction
selling and admin exp.              15,345.00      20,460.00
sales of securities                   12,276
* company must maintain a minimum of 20,460 per month.

I made the cash budget in Excel. Pls. see attachment for my Cash budget.

Cash balance at the end of January is 28,133
Cash balance at the end of February is 20,460.
Danner Company had to borrow from its line of credit to maintain its minimum cash balance requirement. 
Ver imagen talkingturkey