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

Total cash required = (15,820)

Explanation:

Giving the following information:

Crane Corporation is projecting a cash balance of $33,900 in its December 31, 2019, balance sheet. Crane'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. Crane wants to maintain a balance of at least $28,250 cash at the end of each quarter.

Cash budget:

From last year = 33,900

Collections = 209,050

Direct material = (48,590)

Equipment = 3,390

Direct labor = (79,100)

Overhead = (39,550)

Selling and administrative expenses = (50,850)

Securities = (15,820)

Ending inventory = (28,250)

Total = (15,820)