Danner Company expects to have a cash balance of $51,300 on January 1, 2020. Relevant monthly budget data for the first 2 months of 2020 are as follows. Collections from customers: January $96,900, February $171,000. Payments for direct materials: January $57,000, February $85,500. Direct labor: January $34,200, February $51,300. Wages are paid in the month they are incurred. Manufacturing overhead: January $23,940, February $28,500. These costs include depreciation of $1,710 per month. All other overhead costs are paid as incurred. Selling and administrative expenses: January $17,100, February $22,800. These costs are exclusive of depreciation. They are paid as incurred. Sales of marketable securities in January are expected to realize $13,680 in cash. Danner Company has a line of credit at a local bank that enables it to borrow up to $28,500. The company wants to maintain a minimum monthly cash balance of $22,800. Prepare a cash budget for January and February.

Danner Company

Danner Company

Cash Budget

                                               January       February

Beginning Balance                 $51,300        $31,350

Collections from customers:  96,900         171,000

Sale of marketable securities 13,680

Total cash receipts              $161,880     $202,350

Payments:

Direct materials:                   $57,000       $85,500

Direct labor:                            34,200          51,300

Manufacturing overhead:      22,230         26,790

Selling & Administrative:         17,100          22,800

Total payments                  $130,530      $186,390

Cash Balance                       $31,350        $15,960

Minimum cash balance         22,800         22,800

Excess cash (deficit)             $8,550         ($6,840)

Explanation:

a) Data and Calculations:

Expected Cash balance on January 1, 2020 = $51,300

Collections from customers:

January   $96,900

February $171,000

Payments for direct materials:

January $57,000

February $85,500

Direct labor:

January $34,200

February $51,300

Manufacturing overhead:

January $23,940 - depreciation of $1,710 Net $22,230

February $28,500 - depreciation of $1,710 Net $26,790

Selling and administrative expenses:

January $17,100

February $22,800

Sales of Marketable securities in January = $13,680

Line of credit = $28,500

Expected monthly minimum cash balance = $22,800

answer; (10%) commission;

match the scenarios with terms related to financial aid.

pell grant

student loan

merit-based scholarship

richard is one of the leading college basketball players in the state of florida. he also maintains a good academic record. looking at his talent and potential, furman university offers to bear the expenses for his college education.

arrowright

anita wants to pursue a certificate program in sports nutrition. to pay for the course, she borrows money by filing the fafsa.

arrowright

nathan comes from a low-income household. he wants to pursue an undergraduate degree in marketing. he receives financial aid covering 50 percent of his college expenses. nathan does not have to pay back this amount.

arrowright