Deitz Corporation is projecting a cash balance of $32,700 in its December 31, 2019, balance sheet. Deitz's schedule of expected collections from customers for the first quarter of 2020 shows total collections of $201,950. The schedule of expected payments for direct materials for the first quarter of 2020 shows total payments of $46,870. Other information gathered for the first quarter of 2020 is sale of equipment $3,270; direct labor $76,300, manufacturing overhead $38,150, selling and administrative expenses $49,050; and purchase of securities $15,260. Deitz wants to maintain a balance of at least $27,250 cash at the end of each quarter. Prepare a cash budget for the first quarter. DEITZ CORPORATION Cash Budget

Deitz Corporation is projecting a cash balance of $32,700 in its December 31, 2019, balance sheet. Deitz's schedule of expected collections from customers for the first quarter of 2020 shows total collections of $201,950. The schedule of expected payments for direct materials for the first quarter of 2020 shows total payments of $46,870. Other information gathered for the first quarter of 2020 is sale of equipment $3,270; direct labor $76,300, manufacturing overhead $38,150, selling and administrative expenses $49,050; and purchase of securities $15,260. Deitz wants to maintain a balance of at least $27,250 cash at the end of each quarter. Prepare a cash budget for the first quarter. DEITZ CORPORATION Cash Budget

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 2P

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