Danner Company expects to have a cash balance of $ 48,150 on January 1,2020. Relevant...
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Danner Company expects to have a cash balance of $ 48,150 on January 1,2020. Relevant monthly budget data for the first 2 months of 2020 are as follows. Collections from customers: January $90,950, February $160,500 Payments for direct materials: January $53,500, February $80,250. Direct labor: January $ 32,100, February $ 48,150. Wages are paid in the month they are incurred. Manufacturing overhead: January $22.470, February $26,750. These costs include depreciation of $1,605 per month.All other overhead costs are paid as incurred. Selling and administrative expenses: January 5 16,050, February $21.400. These costs are exclusive of depreciation They are paid as incurred. Sales of marketable securities in January are expected to realize $ 12,840 in cash. Danner Company has a line of credit at a local bank that enables it to borrow up to $26,750. The company wants to maintain a minimum monthly cash balance of $21,400. Prepare a cash budget for January and February
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