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tresset_1 [31]
2 years ago
10

Danner Company expects to have a cash balance of $53,100 on January 1, 2020. Relevant monthly budget data for the first 2 months

of 2020 are as follows.
Collections from customers: January $100,300, February $177,000.
Payments for direct materials: January $59,000, February $88,500.
Direct labor: January $35,400, February $53,100. Wages are paid in the month they are incurred.
Manufacturing overhead: January $24,780, February $29,500. These costs include depreciation of $1,770 per month. All other overhead costs are paid as incurred.
Selling and administrative expenses: January $17,700, February $23,600. These costs are exclusive of depreciation. They are paid as incurred.

Sales of marketable securities in January are expected to realize $14,160 in cash. Danner Company has a line of credit at a local bank that enables it to borrow up to $29,500. The company wants to maintain a minimum monthly cash balance of $23,600.

Required:
Prepare a cash budget for January and February.
Business
1 answer:
Step2247 [10]2 years ago
7 0

Answer:

Ending Cash Balance:

January = $32,450

February = $23,600

Loan Balance End of Month

January = $0

February = $7,080

Explanation:

Note: See the attached excel file for the cash budget for January and February.

In the attached excel file, the following calculation is made:

Additional loan in February = Minimum monthly cash balance - Preliminary cash balance in February = $23,600 - $16,520 = $7,080

From the attached excel file, we have:

Ending Cash Balance:

January = $32,450

February = $23,600

Loan Balance End of Month

January = $0

February = $7,080

Download xlsx
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Answer:

29,394 units

Explanation:

The formula for break even point is given as Fixed cost / Contribution margin.

Where;

Contribution margin = Sales per unit - Variable cost per unit

Given that ;

Fixed cost = $194,000

Unit selling price = $14.90

Unit variable cost = $8.30

Therefore;

BEP(units) = $194,000 / $14.90 - $8.30

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3 years ago
Why are banks willing to lend funds to people?
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<span>Because interest income is usually the largest component of a bank's income, specifically for a commercial bank. (Investment banks earn more from fees and trading.)</span>
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3 years ago
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A certain bookstore chain has two stores, one in San Francisco and one in Los Angeles. It stocks three kinds of books: hardcover
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Answer:

                           Hard       Soft        Plastic

San Francisco 3,600           7,800       12,000  

Los Angeles  2,400            1,800        3,000

Explanation:

The sales during January were as follows:

                          Hard      Soft          Plastic

San Francisco 600              1,300           2,000  

Los Angeles  400                300              500

If the sales during the next five months were actually the same, then to determine total sales all we have to do is multiply January's sales by 6.

600 x 6 = 3,600         1,300 x 6 = 7,800         2,000 x 6 = 12,000

400 x 6 = 2,400           300 x 6 = 1,800            500 x 6 = 3,000

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3 years ago
Hadley Corporation, which has only one product, has provided the following data concerning its most recent month of operations:
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Answer:

the total period cost for the month under variable costing is $46,700

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Period Cost Under Variable Costing = Fixed Manufacturing Overheads + All Non-Manufacturing Overheads (Variable and Fixed)

<u>Calculation for the total period cost - Varible Costing</u>

Variable selling and administrative expense ( $ 7× 1,070 Units)       $ 7,490

Fixed manufacturing overhead                                                          $ 13,530

Fixed selling and administrative expense                                        $ 25,680

Total period cost for the month                                                         $46,700

4 0
2 years ago
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kramer

Answer:

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Explanation:

* The data was missing in this question, a similar question is attached with the answer, and answer is made accordingly. Please find it.

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