ACCT 2000 Chapter : C21 Probems
Document Summary
Danner company expects to have a cash balance of ,000 on january 1, 2014. Relevant monthly budget data for the first 2 months of 2014 are as follows: Payments for direct material: january ,000, february ,000. Wages are paid in the month they are incurred. These costs include depreciation of ,500 per month. All other overhead costs are paid as incurred. Selling and administrative expenses: january ,000, february ,000. Sales of marketable securities in january are expected to realize ,000 in cash. Company has a line of credit at a local bank that enables it to borrow up to ,000. The company wants to maintain a minimum monthly cash balance of ,000. Prepare a cash budget for january and february. Glendo farm supply company manufactures and sells a pesticide call snare. Prepare the budgeted income statement for the first 6 months and all required operating budgets by quarters. (note: use variable and fixed in the selling and administrative expense budget. )