Ivanhoe Company expects to have a cash balance of $92,000 on January 1, 2022. These...
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Ivanhoe Company expects to have a cash balance of $92,000 on January 1, 2022. These are the relevant monthly budget data for the first two months of 2022. Collections from customers: January $142.000, February $292,000. Payments to suppliers: January $80,000, February $150,000 Wages: January $60,000, February $80,000. Wages are paid in the month they are incurred. Administrative expenses: January $42,000. February $48,000. These costs include depreciation of $2,000 per month. All other costs are paid as incurred. Selling expenses: January $30,000, February $40,000. These costs are exclusive of depreciation. They are paid as incurred. Sales of short-term investments in January are expected to realize $24,000 in cash. Ivanhoe Company has a line of credit at a local bank that enables it to borrow up to $50,000. The company wants to maintain a minimum monthly cash balance of $40,000 1. 2. 3. 4. 5. 6. >
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