Deitz Corporation is projecting a cash balance of $34,200 in its December 31, 2019, balance sheet....

Deitz Corporation is projecting a cash balance of $34,200 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 $210,900. The schedule of expected payments for direct materials for the first quarter of 2020 shows total payments of $49,020. Other information gathered for the first quarter of 2020 is sale of equipment $3,420; direct labor $79,800, manufacturing overhead $39,900, selling and administrative expenses $51,300; and purchase of securities $15,960. Deitz wants to maintain a balance of at least $28,500 cash at the end of each quarter.

Prepare a cash budget for the first quarter.

2. Nieto Company’s budgeted sales and direct materials purchases are as follows.

	Budgeted Sales	Budgeted D.M. Purchases
January	$255,000	$39,100
February	220,900	46,100
March	326,000	48,500

Nieto’s sales are 30% cash and 70% credit. Credit sales are collected 10% in the month of sale, 50% in the month following sale, and 36% in the second month following sale; 4% are uncollectible. Nieto’s purchases are 50% cash and 50% on account. Purchases on account are paid 40% in the month of purchase, and 60% in the month following purchase.

(a)

Prepare a schedule of expected collections from customers for March.

(b)

Prepare a schedule of expected payments for direct materials for March.

Expert Solution

ekkarill92 answered 2 years ago

Deitz Corporation is projecting a cash balance of $36,900 in its December 31, 2019, balance sheet....

Deitz Corporation is projecting a cash balance of $36,900 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 $227,550. The schedule of expected payments for direct materials for the first quarter of 2020 shows total payments of $52,890. Other information gathered for the first quarter of 2020 is sale of equipment $3,690; direct labor $86,100, manufacturing overhead $43,050, selling and administrative expenses $55,350; and purchase...

Prepare a balance sheet as of December 31, 2019. BUSINESS SOLUTIONS Balance Sheet December 31, 2019...

Prepare a balance sheet as of December 31, 2019. BUSINESS SOLUTIONS Balance Sheet December 31, 2019 Assets Cash Accounts receivable Prepaid insurance Prepaid insurance Prepaid rent Office equipment Accumulated depreciation—Office equipment 0 Accumulated depreciation—Computer equipment Computer equipment 0 Total Assets 0 Liabilities Accounts payable Wages payable Unearned computer services revenue Total Liabilities 0 Equity Retained earnings Common stock Total equity $0 Total Liabilities and Equity $0 After the success of the company’s first two months, Santana Rey continues to operate...

Riyadh Star, Balance Sheet Statement December 31, 2018 & December 31, 2019 2018 2019 Cash $ ...

Riyadh Star, Balance Sheet Statement December 31, 2018 & December 31, 2019 2018 2019 Cash $ 104,000 $ 123,250 Accounts Receivable 183,350 100,000 Inventory 250,000 210,000 Prepaid Expenses 80,000 120,000 Equipment (Net) 584,650 800,000 Total Assets $ 1,202,000 $ 1,353,250 Accounts Payable $ 220,000 $ 180,000 Salary Payable 94,000 56,250 Interest Payable 20,000 37,000 Bonds Payable 320,000 300,000 Common Shares 370,000 580,000 Retained Earnings...

A comparative balance sheet for Crane Corporation is presented below. December 31 Assets 2020 2019 Cash...

A comparative balance sheet for Crane Corporation is presented below. December 31 Assets 2020 2019 Cash $70720 $22880 Accounts receivable 85280 68640 Inventory 176800 196560 Land 73840 114400 Equipment 291200 208000 Accumulated depreciation–equipment (76960) (43680) Total $620880 $566800 Liabilities and Stockholders’ Equity Accounts payable $35360 $48880 Bonds payable 156000 208000 Common stock ($1 par) 170560 170560 Retained earnings 258960 139360 Total $620880 $566800 Additional information: 1. Net income for 2020 was $161200; there were no gains or losses. 2. Cash...

The December 31, 2019, balance sheet for Franklin Corporation is presented here. These are the only...

The December 31, 2019, balance sheet for Franklin Corporation is presented here. These are the only accounts on Franklin’s balance sheet. Amounts indicated by question marks (?) can be calculated using the following additional information: FRANKLIN CORPORATION Balance Sheet As of December 31, 2019 Assets Cash $ 40,000 Accounts receivable (net) ? Inventory ? Property, plant, and equipment (net) 294,000 $ 441,000 Liabilities and Stockholders’ Equity Accounts payable (trade) $ ? Income taxes payable (current) 40,000 Long-term debt ? Common...

The December 31, 2019, balance sheet for Baird Corporation is presented here. These are the only...

The December 31, 2019, balance sheet for Baird Corporation is presented here. These are the only accounts on Baird’s balance sheet. Amounts indicated by question marks (?) can be calculated using the following additional information: BAIRD CORPORATION Balance Sheet As of December 31, 2019 Assets Cash $ 20,000 Accounts receivable (net) ? Inventory ? Property, plant, and equipment (net) 295,000 $ 442,000 Liabilities and Stockholders’ Equity Accounts payable (trade) $ ? Income taxes payable (current) 20,000 Long-term debt ? Common...

Upton's balance sheet as of December 31, 2019, is shown here (millions of dollars): Cash $...

Upton's balance sheet as of December 31, 2019, is shown here (millions of dollars): Cash $ 3.5 Accounts payable $ 9.0 Receivables 26.0 Notes payable 18.0 Inventories 58.0 Line of credit 0 Total current assets $ 87.5 Accruals 8.5 Net fixed assets 35.0 Total current liabilities $ 35.5 Mortgage loan 6.0 Common stock 15.0 Retained earnings 66.0 Total assets $122.5 Total liabilities and equity $122.5 Sales for 2019 were $250 million and net income for the year was $7.5 million,...

On December 31, 2019, the balance sheet of Red Stout Corporation reported bonds outstanding with a...

On December 31, 2019, the balance sheet of Red Stout Corporation reported bonds outstanding with a face value of $2,000,000 and a related unamortized premium of $60,000. Interest is payable semiannually on January 1 and July 1. A) Prepare an entry in journal form without explanations to record the retirement of bonds with a face value of $1,200,000 on January 1, 2020, assuming the bonds were redeemed at a call price of 104. B) Prepare an entry in journal form...

Below is the comparative balance sheet for Sheffield Corporation. Dec. 31, 2020 Dec. 31, 2019 Cash...

Below is the comparative balance sheet for Sheffield Corporation. Dec. 31, 2020 Dec. 31, 2019 Cash $16,400 $21,100 Short-term investments 25,200 19,100 Accounts receivable 42,900 44,600 Allowance for doubtful accounts (1,800 ) (2,000 ) Prepaid expenses 4,200 2,500 Inventory 81,300 65,700 Land 49,600 49,600 Buildings 126,200 72,800 Accumulated depreciation—buildings (30,200 ) (23,300 ) Equipment 53,000 45,800 Accumulated depreciation—equipment (19,100 ) (15,600 ) Delivery equipment 39,200 39,200 Accumulated depreciation—delivery equipment (22,200 ) (20,700 ) Patents 14,900 –0– $379,600 $298,800 Accounts payable...

Below is the comparative balance sheet for Pina Corporation. Dec. 31, 2020 Dec. 31, 2019 Cash...

Below is the comparative balance sheet for Pina Corporation. Dec. 31, 2020 Dec. 31, 2019 Cash $16,700 $21,000 Short-term investments 24,900 19,100 Accounts receivable 42,500 45,000 Allowance for doubtful accounts (1,800 ) (2,100 ) Prepaid expenses 4,300 2,500 Inventory 81,800 65,500 Land 50,400 50,400 Buildings 124,200 73,600 Accumulated depreciation—buildings (29,900 ) (22,900 ) Equipment 52,700 45,700 Accumulated depreciation—equipment (18,900 ) (15,600 ) Delivery equipment 38,600 38,600 Accumulated depreciation—delivery equipment (21,900 ) (20,700 ) Patents 15,000 –0– $378,600 $300,100 Accounts payable...

Question