Mass Company has $9,500 in cash on hand on January 1 and has collected the following budget data: E (Click the icon to view the budget data) Assume Mass has cash payments for selling and administrative expenses including salaries of $60,000 plus commissions of 1% of sales, all paid in the month of sale. The company requires a minimum cash balance of $9,000. 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 - Data Table Cash available Cash payments: Purchases of merchandise inventory January February Selling and administrative expenses Sales 1.340,000 $ 690,000 Total cash payments Cash receipts from customers 851 420 871,100 Cash payments for merchandise inventory 561 200 532,224 Ending cash balance before financing Minimum cash balance desired Projected cash excess (deficiency) Print Done Financing: Borrowing Principal repayments Total effects of financing Ending cash balance

Mass Company has $9,500 in cash on hand on January 1 and has collected the following budget data: E (Click the icon to view the budget data) Assume Mass has cash payments for selling and administrative expenses including salaries of $60,000 plus commissions of 1% of sales, all paid in the month of sale. The company requires a minimum cash balance of $9,000. 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 - Data Table Cash available Cash payments: Purchases of merchandise inventory January February Selling and administrative expenses Sales 1.340,000 $ 690,000 Total cash payments Cash receipts from customers 851 420 871,100 Cash payments for merchandise inventory 561 200 532,224 Ending cash balance before financing Minimum cash balance desired Projected cash excess (deficiency) Print Done Financing: Borrowing Principal repayments Total effects of financing Ending cash balance

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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