A) Prepare Drew Consulting's cash budget for January AND February
B) How much cash will Drew borrow in February if cash receipts from customers that month total $39,000 instead of $49,000
Requirement 1 | |||||||
DREW CONSULTING, INC. | |||||||
Cash Budget | |||||||
For the Two Months Ended February 28, 2018 | |||||||
January | February | ||||||
Beginning cash balance | $ 15,000 | $ 42,000 | |||||
Cash receipts | 48,000 | 49,000 | |||||
Cash available | 63,000 | 91,000 | |||||
Cash payments: | |||||||
Capital expenditures | 18,000 | 41,000 | |||||
Selling and administrative expenses | 3,000 | 3,000 | |||||
Interest expense | 0 | 0 | |||||
Total cash payments | 21,000 | 44,000 | |||||
Ending cash balance before financing | 42,000 | 47,000 | |||||
Minimum cash balance desired | (28,000) | (28,000) | |||||
Projected cash excess (deficiency) | 14,000 | 19,000 | |||||
Financing: | |||||||
Borrowing | 0 | 0 | |||||
Principal repayments | 0 | 0 | |||||
Total effects of financing | 0 | 0 | |||||
Ending cash balance | $ 42,000 | $ 47,000 | |||||
Requirement 2 | |||||||
February Revised |
|||||||
January | February | ||||||
Beginning cash balance | $ 15,000 | $ 42,000 | |||||
Cash receipts | 48,000 | 39,000 | |||||
Cash available | 63,000 | 81,000 | |||||
Cash payments: | |||||||
Capital expenditures | 18,000 | 41,000 | |||||
Selling and administrative expenses | 3,000 | 3,000 | |||||
Interest expense | 0 | 0 | |||||
Total cash payments | 21,000 | 44,000 | |||||
Ending cash balance before financing | 42,000 | 37,000 | |||||
Minimum cash balance desired | (23,000) | (23,000) | |||||
Projected cash excess (deficiency) | 19,000 | 14,000 | |||||
Financing: | |||||||
Borrowing | 0 | 0 | |||||
Principal repayments | 0 | 0 | |||||
Total effects of financing | 0 | 0 | |||||
Ending cash balance | $ 42,000 | $ 37,000 |
A) Prepare Drew Consulting's cash budget for January AND February B) How much cash will Drew...
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