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

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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LB Enterprises (LB) is preparing its budget for the first quarter of 2019. LB's balance sheet as of December 31, 2018 is as follows: Assets Liabilities Cash $5,000 Accounts Payable $9500 Accounts Recievable 28,000 Inventories Direct Materials 8,100 Finished Goods (500 Units) 16,870 Stockholders Equity Equipment - gross 45,000 Accumulated depreciation 15.000 Common Stock $15,000 Net Equipment 30,000 Retained Earnings 63,470 Total Assets $87,970 Total Liabilities and $87,960 Equity LB sells one product for $45/unit. The Company forecasts that it will sell 2,000; 1,500; 1,600; and 1,700 units in January, February, March and April, respectively. • Sales to customers are all on credit. 40% of the cash for these sales is collected in the month of the sale and the remaining 60% is collected in the following month. LB wants finished goods inventory equal to 25% of the next month's sales on hand at the end of each month. LB wants direct materials equal to 75% of the current month's production…