bu recently began a job as an accounting intern at Regis Adventures. Your first task was to help prepare the cash budget for February and March. Unfortunately, the computer with the budget e crashed, and you did not have a backup or even a hard copy. You ran a program to salvage bits of data from the budget file. After entering the following data in the budget, you may have just hough information to reconstruct the budget. (Click the icon to view information on borrowing cash.) equirements omplete the following cash budget. (For amounts with a $0 balance, make sure to enter "0" in the appropriate input field. Enter cash deficiencies with a minus sign or parentheses. Enter the net tal effects of financing with a minus sign when the amount is a net outflow. Round interest expense to the nearest whole dollar.) eginning cash balance $ 16,700 More info Plus: Cash collections Plus: Cash from sale of plant assets $ 106,700 Total cash available Less: Cash payments (purchase inventory) 47,500 Less: Cash payments (operating expenses) $ 97,600 Total cash payments 1) Ending cash balance before financing Minimum cash balance desired Cash excess (deficiency) Financing: Plus: New borrowings Less: Debt repayments Less: Interest payments 2) Total effects of financing Ending cash balance (1) + (2) 25,000 Regis Adventures eliminates any cash deficiency by borrowing the exact amount needed from State Street Bank, where the current interest rate is 6%. Regis Adventures pays interest on its outstanding debt at the end of each month. The company also repays all borrowed amounts at the end of the month as cash becomes available. Print Done
bu recently began a job as an accounting intern at Regis Adventures. Your first task was to help prepare the cash budget for February and March. Unfortunately, the computer with the budget e crashed, and you did not have a backup or even a hard copy. You ran a program to salvage bits of data from the budget file. After entering the following data in the budget, you may have just hough information to reconstruct the budget. (Click the icon to view information on borrowing cash.) equirements omplete the following cash budget. (For amounts with a $0 balance, make sure to enter "0" in the appropriate input field. Enter cash deficiencies with a minus sign or parentheses. Enter the net tal effects of financing with a minus sign when the amount is a net outflow. Round interest expense to the nearest whole dollar.) eginning cash balance $ 16,700 More info Plus: Cash collections Plus: Cash from sale of plant assets $ 106,700 Total cash available Less: Cash payments (purchase inventory) 47,500 Less: Cash payments (operating expenses) $ 97,600 Total cash payments 1) Ending cash balance before financing Minimum cash balance desired Cash excess (deficiency) Financing: Plus: New borrowings Less: Debt repayments Less: Interest payments 2) Total effects of financing Ending cash balance (1) + (2) 25,000 Regis Adventures eliminates any cash deficiency by borrowing the exact amount needed from State Street Bank, where the current interest rate is 6%. Regis Adventures pays interest on its outstanding debt at the end of each month. The company also repays all borrowed amounts at the end of the month as cash becomes available. Print Done
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:You recently began a job as an accounting intern at Regis Adventures. Your first task was to help prepare the cash budget for February and March. Unfortunately, the computer with the budget
ile crashed, and you did not have a backup or even a hard copy. You ran a program to salvage bits of data from the budget file. After entering the following data in the budget, you may have just
enough information to reconstruct the budget.
(Click the icon to view information on borrowing cash.)
Requirements
Complete the following cash budget. (For amounts with a $0 balance, make sure to enter "0" in the appropriate input field. Enter cash deficiencies with a minus sign or parentheses. Enter the net
total effects of financing with a minus sign when the amount is a net outflow. Round interest expense to the nearest whole dollar.)
Regis Adventures eliminates any cash deficiency by borrowing the exact amount needed from State
Street Bank, where the current interest rate is 6%. Regis Adventures pays interest on its outstanding debt
at the end of each month. The company also repays all borrowed amounts at the end of the month as cash
becomes available.
Beginning cash balance
Plus: Cash collections
$
16,700
More info
0
Plus: Cash from sale of plant assets
$
106,700
Total cash available
Less: Cash payments (purchase inventory)
Less: Cash payments (operating expenses)
47,500
97,600
Total cash payments
(1) Ending cash balance before financing
25,000
Minimum cash balance desired
Cash excess (deficiency)
Financing:
Plus: New borrowings
Less: Debt repayments
Less: Interest payments
(2) Total effects of financing
Ending cash balance (1) + (2)
Print
Done
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education