accounting help 461236
Mayfield Company expects to have a cash balance of $46,000 on January 1, 2010. These are the relevant monthly budget data for the first two months of 2010.
1. Collections from customers: January $88,307, February $164,307.
2. Payments to suppliers: January $58,307, February $93,307.
3. Wages: January $30,000, February $40,000. Wages are paid in the month they are incurred.
4. Administrative expenses: January $21,000, February $28,000. These costs include depreciation of $1,000 per month. All other costs are paid as incurred.
5. Selling expenses: January $15,417, February $20,417. These costs are exclusive of depreciation. They are paid as incurred.
6. Sales of short-term investments in January are expected to realize $12,000 in cash. Mayfield has a line of credit at a local bank that enables it to borrow up to $25,000. The company wants to maintain a minimum monthly cash balance of $20,000.
Complete the cash budget for January and February below. (List multiple items under receipts, disbursements and financing from largest to smallest amounts, e.g. 10, 5, 2.)
For the Two Months Ending February 28, 2010
Beginning cash balance $
RepaymentsCollections from customersWagesBorrowingsSelling expensesPayments to suppliersSale of short-term investmentsAdministrative expenses
WagesBorrowingsRepaymentsPayments to suppliersSale of short-term investmentsCollections from customersAdministrative expensesSelling expenses
Total available cash
WagesAdministrative expensesSale of short-term investmentsRepaymentsPayments to suppliersSelling expensesCollections from customersBorrowings
WagesRepaymentsAdministrative expensesBorrowingsSelling expensesCollections from customersSale of short-term investmentsPayments to suppliers
Sale of short-term investmentsRepaymentsPayments to suppliersAdministrative expensesCollections from customersSelling expensesWagesBorrowings
BorrowingsWagesAdministrative expensesPayments to suppliersCollections from customersSale of short-term investmentsRepaymentsSelling expenses
Excess (deficiency) of available cash over disbursements
RepaymentsWagesSelling expensesPayments to suppliersCollections from customersBorrowingsSale of short-term investmentsAdministrative expenses
BorrowingsSale of short-term investmentsCollections from customersSelling expensesPayments to suppliersRepaymentsWagesAdministrative expenses
Ending cash balance $