Russ Company has $11,500 in cash on hand on January 1 and has collected the...
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Russ Company has $11,500 in cash on hand on January 1 and has collected the following budget data (Click the icon to view the budget data.) Assume Russ has cash payments for selling and administrative expenses including salaries of $32,000 plus c budget for January and February. Will Russ need to borrow cash by the end of February? of 3% of sales, all paid in the month of sale. The company requires a minimum cash balance of $11 ,000. Prepare a cash Cash Budget Two Months Ended January 31 and February 28 January Data Table Beginning cash balance Cash receipts Cash available Cash payments: January February $ 1,340,000 $ Sales Cash receipts from customers Cash payments for merchandise inventory 710,000 871,800 532,346 Purchases of merchandise inventory 851,530 561,500 Selling and administrative expenses Totall cash payments Ending cash balance before financing Minimum cash balance desired Projected cash excess (deficiency) Financing: Print Done Borrowing Principal repayments Total effects of financing Ending cash balance
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