Question

Question 8 View Policies Current Attempt in Progress Oriole Company expects to have a cash balance of $96,600 on January 1, 2022. These are the relevant monthly budget data for the first two months of 2022 1. Collections from customers: January $149,100, February $306,600. 2. Payments to suppliers: January $84.000, February $157,500. 3. Wages: January $63.000, February $84,000. Wages are paid in the month they are incurred. 4. Administrative expenses: January $44,100. February $50.400. These costs include depreciation of $2,100 per month. All other costs are paid as incurred 5. Selling expenses: January $31.500. February $42.000. These costs are exclusive of depreciation. They are paid as incurred. Sales of short-term investments in January are expected to realize $25,200 in cash. Oriole Company has a line of credit at a local bank that enables it to borrow up to $52.500. The company wants to maintain a minimum monthly cash balance of $42.000.

Answer 1

Cash Budget
	January	February
Beginning Cash Balance	$     96,600.00	$ 50400.00
Cash Receipts
Collections from Customers	$ 1,49,100.00	$   3,06,600.00
Sale of short term investments	$     25,200.00
Total Cash Receipts	$ 1,74,300.00	$   3,06,600.00
Cash available	$ 2,70,900.00	$ 357,000.00
Cash Payments
Payments to Suppliers	$       84,000.00	$   1,57,500.00
Wages	$     63,000.00	$      84,000.00
Administrative Expenses	$     42,000.00	$      48,300.00
Selling Expenses	$     31,500.00	$      42,000.00
Total Cash Payments	$ 220,500.00	$   3,31,800.00
Ending Cash Balance before financing	$ 50400.00	$ 25200.00
Finanicng	$                   -	$ 16800
Borrowing	$                   -	$                     -
Principal Repayments	$                   -	$                     -
Ending Cash Balance after financing	$ 50400.00	$ 42000.00