Swifty Company expects to have a cash balance of $ on January Relevant monthly budget data for the first months of are as follows.
Collections from customers: January $ February $
Payments for direct materials: January $ February $
Direct labor: January $ February $ Wages are paid in the month they are incurred.
Manufacturing overhead: January $ February $ These costs include depreciation of $ per month. All other overhead costs are paid as incurred.
Selling and administrative expenses: January $ February $ These costs are exclusive of depreciation. They are paid as incurred.
Sales of marketable securities in January are expected to realize $ in cash. Swifty Company has a line of credit at a local bank that enables it to borrow up to $ The company wants to maintain a minimum monthly cash balance of $
Prepare a cash budget for January and Eebruary.
January
Februa
$
$
:
