Crane Company expects to have a cash balance of $61,950 on January 1 2017. These...
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Crane Company expects to have a cash balance of $61,950 on January 1 2017. These are the elevant monthly budget dat for the rst two months of 201. 1. Collections from customers: January $86,950, February $161,950 2. Payments to suppliers: January $55,950, February $90,950. 3. Wages: January $31,220, February $41,220. Wages are paid in the month they are incurred 4. Administrative expenses: January $22,220, February $25,220. These costs include depreciation of $1,000 per month. All other costs are paid as incurred. 5. Selling expenses: January $16,220, February $21,220. These costs are exclusive of depreciation. They are paid as incurred 6. Sales of short-term investments in January are expected to realize $13,220 in cash. Crane Company has a line of credit at a local bank that enables it to borrow up to $25,000. The company wants to maintain a minimum monthly cash balance of $35,950 Prepare a cash budget for January and February
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