Question

Deitz Corporation is projecting a cash balance of $33,900 in its December 31, 2019, balance sheet....

Deitz Corporation is projecting a cash balance of $33,900 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 $209,050. The schedule of expected payments for direct materials for the first quarter of 2020 shows total payments of $48,590. Other information gathered for the first quarter of 2020 is sale of equipment $3,390; direct labor $79,100, manufacturing overhead $39,550, selling and administrative expenses $50,850; and purchase of securities $15,820. Deitz wants to maintain a balance of at least $28,250 cash at the end of each quarter.

Prepare a cash budget for the first quarter.

DEITZ CORPORATION
Cash Budget
                                                          March 31, 2020For the Quarter Ended March 31, 2020For the Month Ended March 31, 2020

                                                          Selling and Administrative ExpensesPurchase of SecuritiesBeginning Cash BalanceDirect LaborSale of EquipmentRepaymentsBorrowingsTotal ReceiptsCollections from CustomersDirect MaterialsReceiptsTotal DisbursementsManufacturing OverheadExcess of Available Cash Over Cash DisbursementsFinancingDisbursementsTotal Available CashEnding Cash Balance

 $

                                                          AddLess:                                                           Excess of Available Cash Over Cash DisbursementsManufacturing OverheadTotal Available CashFinancingDisbursementsPurchase of SecuritiesTotal ReceiptsRepaymentsBeginning Cash BalanceSale of EquipmentBorrowingsReceiptsDirect MaterialsDirect LaborCollections from CustomersEnding Cash BalanceSelling and Administrative ExpensesTotal Disbursements

                                                          Excess of Available Cash Over Cash DisbursementsTotal Available CashPurchase of SecuritiesDirect LaborReceiptsEnding Cash BalanceBorrowingsDirect MaterialsBeginning Cash BalanceDisbursementsTotal DisbursementsFinancingSelling and Administrative ExpensesSale of EquipmentCollections from CustomersTotal ReceiptsManufacturing OverheadRepayments

                                                          Total DisbursementsEnding Cash BalanceSale of EquipmentPurchase of SecuritiesSelling and Administrative ExpensesDirect MaterialsCollections from CustomersFinancingExcess of Available Cash Over Cash DisbursementsTotal Available CashRepaymentsDisbursementsBeginning Cash BalanceTotal ReceiptsBorrowingsReceiptsDirect LaborManufacturing Overhead

                                                          Purchase of SecuritiesBorrowingsDirect LaborBeginning Cash BalanceTotal Available CashSale of EquipmentTotal ReceiptsDisbursementsCollections from CustomersDirect MaterialsFinancingEnding Cash BalanceTotal DisbursementsSelling and Administrative ExpensesRepaymentsExcess of Available Cash Over Cash DisbursementsManufacturing OverheadReceipts

                                                          BorrowingsSelling and Administrative ExpensesSale of EquipmentRepaymentsEnding Cash BalanceFinancingExcess of Available Cash Over Cash DisbursementsTotal DisbursementsTotal Available CashBeginning Cash BalancePurchase of SecuritiesDirect MaterialsReceiptsDisbursementsCollections from CustomersDirect LaborManufacturing OverheadTotal Receipts

                                                          AddLess:                                                           Direct MaterialsTotal ReceiptsTotal Available CashReceiptsDirect LaborFinancingBeginning Cash BalanceSale of EquipmentExcess of Available Cash Over Cash DisbursementsRepaymentsBorrowingsTotal DisbursementsSelling and Administrative ExpensesCollections from CustomersPurchase of SecuritiesDisbursementsManufacturing OverheadEnding Cash Balance

                                                          Ending Cash BalanceFinancingManufacturing OverheadRepaymentsCollections from CustomersDisbursementsPurchase of SecuritiesExcess of Available Cash Over Cash DisbursementsReceiptsBorrowingsSale of EquipmentTotal DisbursementsDirect LaborBeginning Cash BalanceDirect MaterialsTotal Available CashSelling and Administrative ExpensesTotal Receipts

                                                          Ending Cash BalanceSelling and Administrative ExpensesReceiptsTotal DisbursementsManufacturing OverheadPurchase of SecuritiesDirect MaterialsDisbursementsCollections from CustomersTotal Available CashRepaymentsBeginning Cash BalanceBorrowingsExcess of Available Cash Over Cash DisbursementsFinancingDirect LaborTotal ReceiptsSale of Equipment

                                                          RepaymentsCollections from CustomersBeginning Cash BalanceReceiptsTotal DisbursementsSale of EquipmentBorrowingsManufacturing OverheadPurchase of SecuritiesDirect MaterialsTotal ReceiptsTotal Available CashExcess of Available Cash Over Cash DisbursementsSelling and Administrative ExpensesDirect LaborDisbursementsFinancingEnding Cash Balance

                                                          Ending Cash BalanceRepaymentsPurchase of SecuritiesReceiptsManufacturing OverheadTotal DisbursementsExcess of Available Cash Over Cash DisbursementsDisbursementsTotal ReceiptsSelling and Administrative ExpensesSale of EquipmentBorrowingsCollections from CustomersDirect MaterialsDirect LaborTotal Available CashFinancingBeginning Cash Balance

                                                          Manufacturing OverheadDirect MaterialsSale of EquipmentBorrowingsPurchase of SecuritiesCollections from CustomersReceiptsDisbursementsDirect LaborFinancingTotal Available CashRepaymentsExcess of Available Cash Over Cash DisbursementsEnding Cash BalanceTotal DisbursementsSelling and Administrative ExpensesTotal ReceiptsBeginning Cash Balance

                                                          Total DisbursementsRepaymentsDisbursementsExcess of Available Cash Over Cash DisbursementsDirect LaborReceiptsBorrowingsTotal Available CashSale of EquipmentBeginning Cash BalanceManufacturing OverheadEnding Cash BalancePurchase of SecuritiesFinancingCollections from CustomersSelling and Administrative ExpensesDirect MaterialsTotal Receipts

                                                          Excess of Available Cash Over Cash DisbursementsBorrowingsSelling and Administrative ExpensesPurchase of SecuritiesManufacturing OverheadCollections from CustomersReceiptsTotal Available CashTotal ReceiptsDisbursementsSale of EquipmentRepaymentsTotal DisbursementsDirect LaborEnding Cash BalanceBeginning Cash BalanceDirect MaterialsFinancing

                                                          Direct MaterialsDirect LaborSale of EquipmentCollections from CustomersDisbursementsBorrowingsReceiptsEnding Cash BalanceTotal DisbursementsFinancingExcess of Available Cash Over Cash DisbursementsSelling and Administrative ExpensesRepaymentsBeginning Cash BalanceTotal Available CashTotal ReceiptsManufacturing OverheadPurchase of Securities

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