Question

Exercise 7-14 surland Company expects to have a cash balance of s61.300 on January 1, 2017. These are the relevant monthly budget data for the first two months of 2017 1. Collections from customers: January $86.300 February $161,300. 2. Payments to supplers: January $55.300, February s30,740, February 740, are paid in $1,000 per All other costs are paid as incurred 4. Administrative expenses: January s21,740, February These costs include depreciation of month S. Selling expenses February s20,740. These costs are exclusive of depreciation. They are paid of creditata local bank that enables to berrew up to 2s,ooo The company 6, sales of short-term investments in January are pected to realize $12,740 in ex wants to maintain a minimum monthly cash balance of $35,300. Prepare a cash budget for January and February. SUNLAND COMPANY Cash Budget January February

Answer 1

Answer:

$\left[\begin{array}{ccc}&January&February\\beginning&74040&50560\\receipts&99040&161300\\disbursement&(122520)&(175520)\\interest&0&0\\subtotal&50560&36340\\minimun&35300&35300\\Financing&&\\beginning&0&0\\payment/loan&0&1040\\ending&0&1040\\&&\\ending cash&50560&35300\\\end{array}\right]$

Attached the information for future references as the wording you use is  confusing

Explanation:

we add up the collection with the short term proceeds

Then, in expenses we add up each month and subtract the depreciation,

Last step will be checking for financing if below the minimum we will finance until achieve it.