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Problem 2 Bastille Corporation prepares monthly cash budgets. Here are relevant data...

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Accounting

Problem 2
Bastille Corporation prepares monthly cash budgets. Here are relevant data from operating
budgets for 2025
January February
Sales $360,000 $400,000
Purchases $120,000 $130,000
Salaries $84,000 $81,000
Administrative Expenses $72,000 $75,000
Selling Expenses $79,000 $88,000
All sales and purchases are on account. Budgeted collections and disbursement data are given
below. All other expenses are paid in the month incurred. Administrative expenses include
$1,000 of depreciation per month.
Other data
1. Collections from customers:
January: $326,000
February: $378,00
2. Payments for purchases:
January: $$110,000
February: $135,000
3. Other receipts:
January: Collection of December 31,2024, notes receivable $15,000
February: Proceeds from sale of securities $4,000
4. Other disbursements:
February: $10,000 cash dividends
The companys cash balance on January 1,2025, is expected to be $46,000. The company wants
to maintain a minimum cash balance of $40,000.
Instructions
Prepare a cash budget for January and February.

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