Question

Die Truesdal Sales Purchases Salaries Administrative expenses Selling expenses January February $260.000 $318.000 112,000 120.000 72,000 78,000 58,000 60.000 30,000 es and purchases are on account, Budgeted collections and disbursement de 36,000 administrative expenses, which include $2,000 of depreciation per month elow. All other expenses are paid in the month incurred except for are given below. All other expe Other data Collections from customers: January $279,500; February $298,000. Payment for purchases: January $106.000; February $116,000. s. Other receipts January collection of December 31, 2013, interest receivable $7,500; February: proceeds from sale of securities $8,000 Other disbursements-January: pay $35.000 note payable due January 1, 2014 February: pay $5,000 cash dividend 5. The company's cash balance on January 1, 2014 is expected to be $52,000. The company wants to maintain a minimum cash balance of $40,000. Instructions Prepare a cash budget for January and February. Jan. 31 ending cash bal. $40,000

Answer 1

	January	February
Opening balance	52,000	40,000
Add: Cash inflows
Collections from customers	279,500	298,000
Other receipts	7,500	8,000
Total cash available	339,000	346,000
less: cash outflows
Payment for purchases	106,000	116,000
Salaries	72,000	78,000
Administrative expenses (less depreciation)	56,000	58,000
Selling expenses	30,000	36,000
Other disbursements	35,000	5,000
Total outflow	299,000	293,000
Balance (cash available - outflow)	40,000	53,000