Question

Carla Vista Company expects to have a cash balance of $64,400 on January 1, 2022. These are the relevant monthly budget data for the first two months of 2022.

1.		Collections from customers: January $99,400, February $204,400.
2.		Payments to suppliers: January $56,000, February $105,000.
3.		Wages: January $42,000, February $56,000. Wages are paid in the month they are incurred.
4.		Administrative expenses: January $29,400, February $33,600. These costs include depreciation of $1,400 per month. All other costs are paid as incurred.
5.		Selling expenses: January $21,000, February $28,000. These costs are exclusive of depreciation. They are paid as incurred.
6.		Sales of short-term investments in January are expected to realize $16,800 in cash. Carla Vista Company has a line of credit at a local bank that enables it to borrow up to $35,000. The company wants to maintain a minimum monthly cash balance of $28,000.

Prepare a cash budget for January and February. (List items that increase cash balance first.)

CARLA VISTA COMPANY Cash Budget choose the accounting period
			enter a dollar amount		enter a dollar amount
	select a cash budget item Selling expensesRepaymentsEnding cash balanceExcess (deficiency) of available cash over disbursementsBorrowingsPayments to suppliersBeginning cash balanceTotal receiptsAdministrative expensesTotal available cashTotal disbursementsFinancingCash receiptsCollections from customersSale of short-term investmentsCash disbursementsWages		enter a dollar amount		enter a dollar amount
	select a closing name for section one Payments to suppliersBeginning cash balanceCollections from customersWagesTotal receiptsBorrowingsAdministrative expensesExcess (deficiency) of available cash over disbursementsSelling expensesRepaymentsTotal disbursementsTotal available cashCash disbursementsFinancingEnding cash balanceSale of short-term investmentsCash receipts		enter a total amount for section one		enter a total amount for section one
select a summarizing line for the first part Cash receiptsCollections from customersBeginning cash balanceSale of short-term investmentsTotal receiptsCash disbursementsPayments to suppliersWagesRepaymentsAdministrative expensesTotal available cashTotal disbursementsSelling expensesExcess (deficiency) of available cash over disbursementsFinancingBorrowingsEnding cash balance			enter a total amount for the first part		enter a total amount for the first part
select between addition and deduction AddLess :	select an opening name for section two Payments to suppliersBorrowingsSale of short-term investmentsTotal receiptsCash disbursementsCash receiptsCollections from customersTotal available cashAdministrative expensesFinancingRepaymentsWagesSelling expensesEnding cash balanceExcess (deficiency) of available cash over disbursementsBeginning cash balanceTotal disbursements
	select a cash budget item Total available cashBorrowingsCash disbursementsSelling expensesEnding cash balanceTotal disbursementsWagesCollections from customersCash receiptsRepaymentsFinancingPayments to suppliersSale of short-term investmentsAdministrative expensesTotal receiptsExcess (deficiency) of available cash over disbursementsBeginning cash balance		enter a dollar amount		enter a dollar amount
	select a cash budget item Excess (deficiency) of available cash over disbursementsCash disbursementsFinancingPayments to suppliersTotal disbursementsTotal receiptsEnding cash balanceWagesAdministrative expensesBorrowingsRepaymentsSelling expensesBeginning cash balanceCollections from customersTotal available cashCash receiptsSale of short-term investments
					g

Answer 1

					January	Feburary
Beginning cash balance			64,400	33,600
Add:Receipts
sale of short term investments			16,800	0
collections from customers			99,400	204,400
total receipts				116,200	204,400
total cash available				180,600	238,000
less:disbursements
payment to suppliers				56,000	105,000
wages					42,000	56,000
Administrative expense			28,000	32,200
Selling expense				21,000	28,000
total Disbursements				147,000	221,200
Excess(Deficiency)of Available cash over disbursement	33,600	16,800
financing:
Add:Borrowings				0	11,200
less:Repayments				0	0
ending cash balance				33,600	28,000