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Danner Company expects to have a cash balance of $49.950 on January 1 2020 Relevant monthly budget data for the first 2 months of 2020 are as follows Collections from customers January $94.250 February $166.500 Payments for direct materials January $55,500 February $83.250 Direct labor January $33.300, February $49.950 Wages are paid in the month they are incurred Manufacturing overhead January 123.310 February $27.750 These costs include depreciation of 11643 per month All other overhead costs are paid as incurred Selling and administras openses January 116.650 February $22.200 These costs are odusive of depreciation They are paid Sales of marketable securities in January are expected to reale $13.320 in cash Danner Company has a line of credit at a local bank that enables it to borrow up to $27,750. The company wants to maintain a minimum monthly cash balance of $22.200 Prepare a cash budget for January and February

Danner Company expects to have a cash balance of $49.950 on January 1 2020 Relevant monthly budget data for the first 2 months of 2020 are as follows Collections from customers January $94.250 February $166.500 Payments for direct materials January $55,500 February $83.250 Direct labor January $33.300, February $49.950 Wages are paid in the month they are incurred Manufacturing overhead January 123.310 February $27.750 These costs include depreciation of 11643 per month All other overhead costs are paid as incurred Selling and administras openses January 116.650 February $22.200 These costs are odusive of depreciation They are paid Sales of marketable securities in January are expected to reale $13.320 in cash Danner Company has a line of credit at a local bank that enables it to borrow up to $27,750. The company wants to maintain a minimum monthly cash balance of $22.200 Prepare a cash budget for January and February

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Danner Company expects to have a cash balance of $49.950 on January 1, 2020: Relevant monthly budget data for the first 2 months of 2020 are as follows Collections from customers January $94.350. February $166.500 Payments for direct materials: January $55.500, February $83.250 Direct labor: January $33,300. February $49,950 Wages are paid in the month they are incurred Manufacturing overhead January $23,310, February $27.750. These costs include depreciation of $1.665 per month. All other overhead costs are paid as incurred Selling and administrative expenses January $16.650, February $22,200 These costs are exclusive of depreciation. They are paid a incurred Sales of marketable securities in January are soxpected to realize $13.320 in cash Danner Company has a line of credit at a local bank that enables it to borrow up to $27.750. The company wants to maintain a minimum monthly cash balance of $22.200 Prepare a cash budget for January and February
Transcribed Image Text:Danner Company expects to have a cash balance of $49.950 on January 1, 2020: Relevant monthly budget data for the first 2 months of 2020 are as follows Collections from customers January $94.350. February $166.500 Payments for direct materials: January $55.500, February $83.250 Direct labor: January $33,300. February $49,950 Wages are paid in the month they are incurred Manufacturing overhead January $23,310, February $27.750. These costs include depreciation of $1.665 per month. All other overhead costs are paid as incurred Selling and administrative expenses January $16.650, February $22,200 These costs are exclusive of depreciation. They are paid a incurred Sales of marketable securities in January are soxpected to realize $13.320 in cash Danner Company has a line of credit at a local bank that enables it to borrow up to $27.750. The company wants to maintain a minimum monthly cash balance of $22.200 Prepare a cash budget for January and February
Prepare a cash budget for huary and February DANNER COMPANY Cash Budget January Febn
Transcribed Image Text:Prepare a cash budget for huary and February DANNER COMPANY Cash Budget January Febn
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