Deitz AG is projecting a cash balance of €30,000 in its December 31, 2019, statement of financial position. Deitz’s schedule of expected collections from customers for the first quarter of 2020 shows total collections of €185,000. The schedule of expected payments for direct materials for the first quarter of 2020 shows total payments of €43,000. Other information gathered for the first quarter of 2020 is sale of equipment €3,000, direct labor €70,000, manufacturing overhead €35,000, selling and administrative expenses €45,000, and purchase of securities €14,000. Deitz wants to maintain a balance of at least €25,000 cash at the end of each quarter.

Instructions

Prepare a cash budget for the first quarter.