Answer:
Rigley's Company will have a cash balance of
$49,000.00 for January
$62,000.00 for February
Explanation:
Rigley Company
Cash Budget for January and February
JANUARY FEBRUARY
RECEIPTS
Balance B/F $46,000.00 $49,000.00
1. Customers $71,000.00 $146,000.00
6. Short Term sales $12,000.00
Loan /Credit $25,000.00 $25,000.00
TOTAL RECEIPTS $154,000.00 $220,000.00
PAYMENTS
2. Suppliers ($40,000.00) ($75,000.00)
3. Wages ($30,000.00) ($40,000.00)
4. Admin Exp ($20,000.00) ($23,000.00)
5. Selling Exp ($15,000.00) ($20,000.00)
TOTAL PAYMENTS ($105,000.00) ($158,000.00)
BALANCE $49,000.00 $62,000.00
NOTE
Admin Exp =
January - $21,000.00 - $1,000.00 = $20,000.00,
February - $24,000.00 - $1,000.00 = $23,000.00