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Deitz Corporation is projecting a cash balance of $30,000 in its
December 31, 2016, balance sheet. Deitz's schedule of expected
collections from customers for the first quarter of 2017 shows total
collections of $185,000. The schedule of expected payments for direct
materials for the first quarter of 2017 shows total payments of $43,000.
Other information gathered for the first quarter of 2017 is sale of
equipment $3,000, direct labor $70,000, manufacturing overhead
$35,000, selling and administrative expenses $45,000, and purchase of
securities $14,000. Deitz wants to maintain a balance of at least $25,000
cash at the end of each quarter.
Instructions
Prepare a cash budget for the first quarter.
Prepare cash budget for a month.
P9-5A
the budget committee of Suppar Company collects the following data for
its San Miguel Store in preparing budgeted income statements for May
and June 2017.
1. Sales for May are expected to be $800,000. Sales in June and
July are expected to be 5% higher than the preceding month.
2.
Cost of goods sold is expected to be 75% of sales.
3. Company policy is to maintain ending merchandise inventory
at 10% of the following month's cost of goods sold.
4.
Operating expenses are estimated to be as follows: