Coronado Company expects to have a cash balance of $41,400 on January 1, 2022. Relevant monthly budget data for the first 2 months of 2022 are as follows. Collections from customers: January $78,200, February $138,000. Payments for direct materials: January $46,000, February $69,000. Direct labor: January $27,600, February $41,400. Wages are paid in the month they are incurred. Manufacturing overhead: January $19,320, February $23,000. These costs include depreciation of $1,380 per month. All other overhead costs are paid as incurred. Selling and administrative expenses: January $13,800, February $18,400. These costs are exclusive of depreciation. They are paid as incurred. Sales of marketable securities in January are expected to realize $11,040 in cash. Coronado Company has a line of credit at a local bank that enables it to borrow up to $23,000. The company wants to maintain a minimum monthly cash balance of $18,400. Prepare a cash budget for January and February. CORONADO COMPANY Cash Budget For the Quarter Ending February 28, 2022

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Chapter1: Financial Statements And Business Decisions
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Coronado Company expects to have a cash balance of $41,400 on January 1, 2022. Relevant monthly budget data for the first 2
months of 2022 are as follows.
Collections from customers: January $78,200, February $138,000.
Payments for direct materials: January $46,000, February $69,000.
Direct labor: January $27,600, February $41,400. Wages are paid in the month they are incurred.
Manufacturing overhead: January $19,320, February $23,000. These costs include depreciation of $1,380 per month. All other
overhead costs are paid as incurred.
Selling and administrative expenses: January $13,800, February $18,400. These costs are exclusive of depreciation. They are paid as
incurred.
Sales of marketable securities in January are expected to realize $11,040 in cash. Coronado Company has a line of credit at a local
bank that enables it to borrow up to $23,000. The company wants to maintain a minimum monthly cash balance of $18,400.
Prepare a cash budget for January and February.
CORONADO COMPANY
Cash Budget
For the Quarter Ending February 28, 2022
רוומרו
Fohr
Transcribed Image Text:Coronado Company expects to have a cash balance of $41,400 on January 1, 2022. Relevant monthly budget data for the first 2 months of 2022 are as follows. Collections from customers: January $78,200, February $138,000. Payments for direct materials: January $46,000, February $69,000. Direct labor: January $27,600, February $41,400. Wages are paid in the month they are incurred. Manufacturing overhead: January $19,320, February $23,000. These costs include depreciation of $1,380 per month. All other overhead costs are paid as incurred. Selling and administrative expenses: January $13,800, February $18,400. These costs are exclusive of depreciation. They are paid as incurred. Sales of marketable securities in January are expected to realize $11,040 in cash. Coronado Company has a line of credit at a local bank that enables it to borrow up to $23,000. The company wants to maintain a minimum monthly cash balance of $18,400. Prepare a cash budget for January and February. CORONADO COMPANY Cash Budget For the Quarter Ending February 28, 2022 רוומרו Fohr
Beginning Cash Balance
Add
Collections from Customers
Total Receipts
Sale of Marketable Securities
Total Available Cash
Disbursements
Add
Direct Labor
Manufacturing Overhead
CORONADO COMPANY
Cash Budget
For the Quarter Ending February 28, 2022
>
>
>
$
January
10
100
$
Febr
17
SA
Transcribed Image Text:Beginning Cash Balance Add Collections from Customers Total Receipts Sale of Marketable Securities Total Available Cash Disbursements Add Direct Labor Manufacturing Overhead CORONADO COMPANY Cash Budget For the Quarter Ending February 28, 2022 > > > $ January 10 100 $ Febr 17 SA
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