Deitz Corporation is projecting a cash balance of $33,000 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 $203,500. The schedule of expected payments for direct materials for the first quarter of 2020 shows total payments of $47.300. Other information gathered for the first quarter of 2020 is sale of equipment $3,300; direct labor $77,000, manufacturing overhead $38,500, selling and administrative expenses $49,500; and purchase of securities $15.400. Deitz wants to maintain a balance of at least $27.500 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 $33,000 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 $203,500. The schedule of expected payments for direct materials for the first quarter of 2020 shows total payments of $47.300. Other information gathered for the first quarter of 2020 is sale of equipment $3,300; direct labor $77,000, manufacturing overhead $38,500, selling and administrative expenses $49,500; and purchase of securities $15.400. Deitz wants to maintain a balance of at least $27.500 cash at the end of each quarter. Prepare a cash budget for the first quarter. DEITZ CORPORATION Cash Budget
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Deitz Corporation is projecting a cash balance of $33,000 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 $203,500. The schedule of expected payments for
direct materials for the first quarter of 2020 shows total payments of $47.300. Other information gathered for the first quarter of
2020 is sale of equipment $3,300; direct labor $77,000, manufacturing overhead $38,500, selling and administrative expenses
$49,500; and purchase of securities $15.400. Deitz wants to maintain a balance of at least $27,500 cash at the end of each quarter.
Prepare a cash budget for the first quarter.
Beginning Cash Balance
Add
Receipts
Collections from Customers
Sale of Equipment
Total Receipts
Total Available Cash
Less
Disbursements
Direct Materials
Direct Labor
DEITZ CORPORATION
Cash Budget
For the Quarter Ended March 31, 2020:
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