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Deitz Corporation is projecting a cash balance of $30,000 in its December 31,2016. balance sheet. Deitz’s schedule of expected collections from customers for the first quarter of 2017 shows total collections of $185,000. The schedule of expected payments for direct materials for the first quarter of 2017 shows total payments of $43,000. Other information gathered for the first quarter of 2017 is sale of equipment $3,000, direct labor $70,000, manufacturing
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Prepare a
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- Pink Martini Corporation is projecting a cash balance of $32,000 in its December 31, 2019, balance sheet. Pink Martini's schedule of expected collections from customers for the first quarter of 2020 shows total collections of $183,000. The schedule of expected payments for direct materials for the first quarter of 2020 shows total payments of $43,000. Other information gathered for the first quarter of 2020 is as follows: sale of equipment $2,000; direct labour $80,000, manufacturing overhead $33,000; selling and administrative expenses $40,000; and purchase of securities $12,000. Pink Martini wants to maintain a balance of at least $23.000 cash at the end of each quarter. Prepare a cash budget for the first quarter. PINK MARTINI CORPORATION Cash Budget For the First Quarter Ending March 31, 2020arrow_forwardE21-15 Deitz Corporation is projecting a cash balance of $30,000 in its December 31, 2016, balance sheet. Deitz's schedule of expected collections from customers for the first quarter of 2017 shows total collections of $185,000. The schedule of expected payments for direct materials for the first quarter of 2017 shows total payments of $43,000. Other information gathered for the first quarter of 2017 is sale of equipment $3,000, direct labor $70,000, manufacturing overhead $35,000, selling and administrative expenses $45,000, and purchase of securities $14,000. Deitz wants to maintain a balance of at least $25,000 cash at the end of each quarter. Instructions Prepare a cash budget for the first quarter.arrow_forwardWildhorse Corporation is projecting a cash balance $29,000 in its December 31, 2021. Balance sheet, Wildhorse schedule of expected collections from customers for the first quarter of 2022 shows total collections of $180,000. The schedule of expected payments for direct materials for the first quarter of 2022 shows total payment of $46,000.Other information gathered for the first quarter of 2022 is as follows: sale of equipment $4000: direct labour $67,000, manufacturing overhead $35,000: selling and administrative expenses $45,000: and purchase of securities $13,000. Wildhorse wants to maintain a balance of at least $24,000 cash at the end of each quarter. Prepare a cash budget for the first quarter.arrow_forward
- China Company expects to have a cash balance of $40,000 on January 1, 2017. Relevant monthly budget data for the first 2 months of 2017 are as follows. Collections from customers: January $90,000, February $200,000. Payments for direct materials: January $60,000, February $95,000. Direct labor: January $30,000, February $45,000. Wages are paid in the month they are incurred. Manufacturing overhead: January $26,000, February $41,000. These costs include depre- ciation of $1,000 per month. All other overhead costs are paid as incured. Selling and administrative expenses: January $15,000, February $20,000. These costs are exclusive of depreciation. They are paid as incurred. Sales of marketable securities in January are expected to realize $10,000 in cash. China Company has a line of credit at a local bank that enables it to borrow up to $25,000. The company wants to maintain a minimum monthly cash balance of $25,000. Instructions Prepare a cash budget for January and February.arrow_forwardMartin Company expects to have a cash balance of $135,000 on January 1, 2017. Relevant monthly budget data for the first 2 months of 2017 are as follows: Collections from customers: January $246,500, February $435,000. Payments for direct materials: January $155,000, February $240,000 Direct labor: January $90,000, February $135,000. Wages are paid in the month they are incurred. Manufacturing overhead: January $63,000, February $75,000. These costs include depreciation of $5,000 per month. All other overhead costs are paid as incurred. Selling and administrative expenses: January $45,000, February $60,000. These costs are exclusive of depreciation. They are paid as incurred. Sales of marketable securities in January are expected to realize $36,000 in cash. Martin Company has a line of credit at the local bank that enables it to borrow up to $75,000. The company wants to maintain a minimum monthly cash balance of $60,000. Instructions (a) Prepare a cash budget for…arrow_forwardServen Corporation has estimated its accrual-basis revenue and expenses for June 2017 and would like your help in estimating cash disbursements. Selected data from these estimated amounts are as follows: Sales: $700,000 Gross Profit (based on sales): 30% Increase in trade accounts recievable for the month: $20,000 Change in accounts payable during month: $0 Increase in inventory during month: $10,000 Variable selling, general, and administrative expenses include a charge for uncollectible accounts of 1% of sales. Total selling, general, and administrative expenses are $71,000 per month plus 15% of sales. Depreciation expense of $40,000 per month is included in fixed selling, general, and administrative expense. Required: On the basis of the preceding data, what are the estimated cash dispursements from operations for June?arrow_forward
- Acmal Manufacturing Company is estimating the following raw material purchases for the last four months of the year: September P850,000; October P900,000; November P810,000; December P780,000. At Acmal, 25% of raw materials purchases are normally paid for in the month of purchase. The remaining 75% is paid for in the month following the purchase. How much cash should Acmal expect to pay out for raw material purchases during the month of November? A. 202,500 B. 832,500 C. 852,500 D. 877,500arrow_forwardAcmal Manufacturing Company is estimating the following raw material purchases for the last four months of the year: September P850,000; October P900,000; November P810,000; December P780,000. At Acmal, 25% of raw materials purchases are normally paid for in the month of purchase. The remaining 75% is paid for in the month following the purchase. How much cash should Acmal expect to pay out for raw material purchases during the month of November? 202,500 832,500 852,500 877,500arrow_forwardThe Dilly Company (DC) began operations on December 1, 2021. All sales are credit sales with 50% collected in the month of sale, 40% in the month following and 10% in the second month following the sale. DC has estimated sales at $1,800,000 for December, $1,500,000 for January, $1,700,000 for February and $1,600,000 for March. The estimated cash collections from customers in the month of February will be?arrow_forward
- The Alex Thomsen Company is planning to request a line of credit from its bank. The following sales forecasts have been made for parts of 2017 and 2018: May 2017 $150,000 June 150,000 July 300,000 August 450,000 September 600,000 October 300,000 November 300,000 December 75,000 January 2018 Collection estimates obtained from the credit and collection department are as follows: collected within the month of sale, 5 percent; collected the month following the sale, 80 percent; collected the second month following the sale, 15 percent. Payments for labor and raw materials are typically made during the month following the month in which 150,000 these costs are incurred. Total labor and raw materials costs are estimated for each month as follows: May 2017 $75,000 June 75,000 July 105,000 August 735,000 September 255,000 October 195,000 November 135,000 December 75,000 General and administrative salaries will amount to approximately $22,500 a month; lease payments under long-term lease…arrow_forwardWILDHORSE COMPANY Cash Budget $ S January $ Februarrow_forwardPharoah Company expects to have a cash balance of $64,800 on January 1, 2017. These are the relevant monthly budget data for the first two months of 2017. Collections from customers: January $89,800, February $164,800. Payments to suppliers: January $58,800, February $93,800. Wages: January $30,530, February $40,530. Wages are paid in the month they are incurred. Administrative expenses: January $21,530, February $24,530. These costs include depreciation of $1,000 per month. All 1. 2. 3. 4. other costs are paid as incurred. Selling expenses: January $15,530, February $20,530. These costs are exclusive of depreciation. They are paid as incurred. Sales of short-term investments in January are expected to realize $12,530 in cash. Pharoah Company has a line of credit at a local bank that enables it to borrow up to $25,000. The company wants to maintain a minimum monthly cash balance of $38,800. 5. 6. Prepare a cash budget for January and February.arrow_forward
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