Danner Company expects to have a cash balance of $47,700 on January 1, 2020. Relevant monthly budget data for the first 2 months of 2020 are as follows. Collections from customers: January $90,100, February $159,000.Payments for direct materials: January $53,000, February $79,500.Direct labor: January $31,800, February $47,700. Wages are paid in the month they are incurred. Manufacturing overhead: January $22,260, February $26,500. These costs include depreciation of $1,590 per month. All other overhead costs are paid as incurred. Selling and administrative expenses: January $15,900, February $21,200. These costs are exclusive of depreciation. They are paid as incurred. Sales of marketable securities in January are expected to realize $12,720 in cash. Danner Company has a line of credit at a local bank that enables it to borrow up to $26,500. The company wants to maintain a minimum monthly cash balance of $21,200. Prepare a cash budget for January and February.

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Explanation:

A cash budget is simply referred to as a budget hat consist of the expected cash receipts and the cash payments for a particular period. These cash receipts and payments consists of revenues gotten and the expenses that were paid.

The cash budget for January and February has been prepared.

of the three mortgage options that demarco and tanya have to choose from, the balloon payment mortgage would be their best option, over adjustable payment and fixed payment plans.ultimately, the balloon payment plan would save demarco and tanya overall, in interest, would cost less monthly, and they would only have to make these payments for 8 years, opposing to 30 years for adjustable or fixed payment plans. 

overall, demarco and tanya would save $80,811 if they chose balloon payments over fixed payments, and would save $116,711 if they choose balloon payments over adjustable payments. benefits with choosing fixed payments over adjustable payments is that, in the end, the payments will still be $836.30 a month, while with adjustable payments, the initial monthly payments will be $763.38 to $1082.70 a month, ultimately leading to a more costly purchase. benefits with choosing fixed payments over balloon payments are not present. benefits in choosing adjustable payments over is that it has a lower interest rate, and starts with lower monthly payments initially. benefits in choosing adjustable payments over balloon payments include a lower interest rate, and lower initial monthly payments. benefits in choosing balloon payments over fixed payments include lower interest rates, lower overall price, lower monthly payments, takes less time to pay off, and does not require a downpayment. benefits in choosing balloon payments over adjustable payments include, lower monthly payments (when averaged), takes less time to pay off, and lower overall price.

hence, option c, balloon payments, is the best option for demarco and tanya to make this purchase, for it will save them a minimum of $80811, and a maximum of $116,711.