Mass Company has $15.000 in cash on hand on January 1 and has collected the following budget data (Click the icon to view the budget data) Assume Mass has cash payments for selling and administrative expenses including salaries of $66,000 plus commissions of 3% of sales, all paid in the month of sale. The company requires a minimum cash balance of $12,500. Prepare a cash budget for January and February. Wil Mass need to borrow cash by the end of February? Begin by preparing the cash budget for January, then prepare the cash budget for February. (Complete all input fields. Enter a "0" for any zero balances) Mass Company Cash Budget Two Months Ended January 31 and February 28 January Beginning cash balance Cash receipts Cash available Cash payments Purchases of merchandise inventory Seling and administrative expenses Tolal cash payments Ending cash balance before financing Minimum cash balance desired 15000 851660 800050 561800 February Data table Sales Cash receipts from customers Cash payments for merchandise inventory Print $ January Done 1.300.000 $ 851,650 501.000 February 600,000 871,100 532.340 Time Remaining: 02:1507
Mass Company has $15.000 in cash on hand on January 1 and has collected the following budget data (Click the icon to view the budget data) Assume Mass has cash payments for selling and administrative expenses including salaries of $66,000 plus commissions of 3% of sales, all paid in the month of sale. The company requires a minimum cash balance of $12,500. Prepare a cash budget for January and February. Wil Mass need to borrow cash by the end of February? Begin by preparing the cash budget for January, then prepare the cash budget for February. (Complete all input fields. Enter a "0" for any zero balances) Mass Company Cash Budget Two Months Ended January 31 and February 28 January Beginning cash balance Cash receipts Cash available Cash payments Purchases of merchandise inventory Seling and administrative expenses Tolal cash payments Ending cash balance before financing Minimum cash balance desired 15000 851660 800050 561800 February Data table Sales Cash receipts from customers Cash payments for merchandise inventory Print $ January Done 1.300.000 $ 851,650 501.000 February 600,000 871,100 532.340 Time Remaining: 02:1507
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Question
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Transcribed Image Text:Mass Company has $15.000 in cash on hand on January 1 and has collected the following budget data
(Click the icon to view the budget data.)
Assume Mass has cash payments for selling and administrative expenses including salaries of $66,000 plus commissions of 3% of sales, all paid in the month of sale. The company requires a minimum
cash balance of $12.500. Prepare a cash budget for January and February. Will Mass need to borrow cash by the end of February?
Begin by preparing the cash budget for January, then prepare the cash budget for February. (Complete all input fields. Enter a "0" for any zero balances)
Mass Company
Cash Budget
Two Months Ended January 31 and February 28
January
Beginning cash balance
Cash receipts
Cash available
Cash payments
Purchases of merchandise inventory
Seling and administrative expenses
Total cash payments
Ending cash balance before financing
Minimum cash balance desired
15000
851660
800050
561800
February
Data table
Sales
Cash receipts from customers
Cash payments for merchandise inventory
Print
S
January
Done
1,300,000 $
851,650
501.000
February
600,000
871,100
532 340
Time Remaining: 02:1507
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