Answer:
The ending cash balance of Jan is $ 68145 which is more than $58,410 . We get this balance after the borrowings. The cash balance is $ 18172 for February .
Explanation:
<em>Monty Company </em>
<em>Cash Budget</em>
<em> January February</em>
Beginning Cash Balance 58410 35695
Add Receipts
Collections from Customers 110330 194700
Sale of Marketable Securities 15576 0
Total Receipts 125906 194700
Total available Cash 184316 230395
Less Disbursements
Direct Materials $64,900, $97,350
Direct labor: $38,940, $58,410
Manufacturing overhead: $27,258, $32,450
Depreciation ($1,947) ( $1,947)
Selling and
Administrative expenses: $19,470, $25,960.
Total Disbursements 148,621 212,223
Excess 35,695 18172
Financing
Add Borrowings $32,450 0
Less Repayments 0 0
Ending Cash Balance 68145 18172
Receipts are added to the cash balance to get the total available cash .
Total cash disbursements are subtracted from the total available cash to find the excess amount from which the repayments are subtracted and borrowings are added to get the ending cash balance.
