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Business, 16.07.2019 18:20 jjaheimhicks3419
Danner company expects to have a cash balance of $45,000 on january 1, 2017. relevant monthly budget data for the first 2 months of 2017 are as follows. collections from customers: january $85,000, february $150,000. payments for direct materials: january $50,000, february $75,000. direct labor: january $30,000, february $45,000. wages are paid in the month they are incurred. manufacturing overhead: january $21,000, february $25,000. these costs include depreciation of $1,500 per month. all other overhead costs are paid as incurred. 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 $12,000 in cash. danner 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 $20,000. prepare a cash budget for january and february.
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Danner company expects to have a cash balance of $45,000 on january 1, 2017. relevant monthly budget...
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