Please do not give solution in image format thanku Danner Company expects to have a cash balance of $47.250 on January 1, 2020. Relevant monthly budget data for the first 2 monthof 2020 are as follows.Collections from customers: January $89,250, February $157,500.Payments for direct materials: January $52.500, February $78,750.Direct labor: January $31.500, February $47.250. Wages are paid in the month they are incurred.Manufacturing overhead: January $22,050, February $26,250. These costs include depreciation of $1,575 per month. All otheroverhead costs are paid as incurred.Selling and administrative expenses: January $15,750, February $21,000. These costs are exclusive of depreciation. They are paid asincurred.Sales of marketable securities in January are expected to realize $12.600 in cash. Danner Company has a line of credit at a local bankthat enables it to borrow up to $26,250. The company wants to maintain a minimum monthly cash balance of $21,000.Prepare a cash budget for January and February.Cash BalanceReceiptsa from Customerskutable SecuritiesDANNER COMPANYCash Budget$January4725089250$February28875157500 Beginning Cash BalanceAdd VCollections from CustomersSale of Marketable SecuritiesTotal ReceiptsTotal Available CashLessReceiptsDirect MaterialsDirect LaborManufacturing OverheadDisbursementsSelling and Administrative ExpensesTotal DisbursementsFinancingExcess (Deficiency) of Available Cash Over Cash DisbursementsAndLess VBorrowingsEnding Cash BalanceV$472508925012600$28875157500UPD0

The cash budged is prepared for the future, and the cash budget is prepared based on estimates. The…

Danner Company expects to have a cash balance of $47.250 on January 1, 2020. Relevant monthly budget data for the first 2 monti of 2020 are as follows. Collections from customers: January $89,250, February $157,500. Payments for direct materials: January $52,500, February $78,750. Direct labor: January $31.500, February $47.250. Wages are paid in the month they are incurred. Manufacturing overhead: January $22,050, February $26,250. These costs include depreciation of $1,575 per month. All other overhead costs are paid as incurred. Selling and administrative expenses: January $15,750, February $21,000. These costs are exclusive of depreciation. They are paid as incurred.

Danner Company expects to have a cash balance of $47.250 on January 1, 2020. Relevant monthly budget data for the first 2 monti of 2020 are as follows. Collections from customers: January $89,250, February $157,500. Payments for direct materials: January $52,500, February $78,750. Direct labor: January $31.500, February $47.250. Wages are paid in the month they are incurred. Manufacturing overhead: January $22,050, February $26,250. These costs include depreciation of $1,575 per month. All other overhead costs are paid as incurred. Selling and administrative expenses: January $15,750, February $21,000. These costs are exclusive of depreciation. They are paid as incurred.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter8: Budgeting

Section: Chapter Questions

Problem 5PB: Cash budget The controller of Mercury Shoes Inc. instructs you to prepare a monthly cash budget for...

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