Carla Vista Company expects to have a cash balance of $64,400 on January 1, 2022....
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Accounting
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.
CARLA VISTA COMPANY Cash Budget January February Ending cash balance CARLA VISTA COMPANY Cash Budget January February Ending cash balance
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