Danner Company expects to have a cash balance of $45,045 on January 1, 2017. Relevant...
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Danner Company expects to have a cash balance of $45,045 on January 1, 2017. Relevant monthly budget data for the first 2 months of 2017 are as follows Collections from customers: January $ 85,085, February $ 150,150. Payments for direct materials: January $ 50,050, February $ 75,075. Direct labor: January $ 30,030, February $45,045. Wages are paid in the month they are incurred. Manufacturing overhead: January $ 21,021, February $25,025. These costs include depreciation of $1,502 per month. All other overhead costs are paid as incurred. Selling and administrative expenses: January $ 15,015, February $20,020. These costs are exclusive of depreciation. They are paid as incurred. Sales of marketable securities in January are expected to realize $12,012 in cash. Danner Company has a line of credit at a local bank that enables it to borrow up to $ 25,025. The company wants to maintain a minimum monthly cash balance of $20,020. Prepare a cash budget for January and February. (Do not leave any answer field blank. Enter O for amounts.) DANNER COMPANY Cash Budget anuary February
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