Prepare Cash Budget For 3 Months Brewster Corporation expects the following cash receipts and disbursements during the first quarter of the year (receipts exclude new borrowings and disbursements exclude interes payments on borrowings since January 1) January February March $280,000 $300,000 $270,000 Cash receipts Cash disbursements 260,000 340,000 280,000 The expected cash balance at January 1, is $62,000. Brewster wants to maintain a cash balance at the end of each month of at least $60,000. Short-term borrowings at 1% interest per month will be used to accomplish this, if necessary. Borrowings (in multiples of $1,000) will be made at the beginning of the month in which they are needed, with interest for that month paid at the end of the month. Prepare a cash budget for the quarter ended March 31. Brewster Corporation Cash Budget for the Quarter Ended March 31 January Beginning cash balance. Cash receipts Short-term borrowings Cash available Cash disbursements Interest payment Total cash disbursements Ending cash balance $ $ $ $ 0 0 $ 0 0 $ 0 $ 0 0 0 $ February 0 0 0 0 $ 0 $ 0 $ 0 0 $ March 0 0 0 0 0 0 0 0

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Prepare Cash Budget For 3 Months
Brewster Corporation expects the following cash receipts and disbursements during the first quarter of the year (receipts exclude new borrowings and disbursements exclude interest
payments on borrowings since January 1)
January February March
$280,000 $300,000 $270,000
Cash receipts
Cash disbursements 260,000 340,000 280,000
The expected cash balance at January 1, is $62,000. Brewster wants to maintain a cash balance at the end of each month of at least $60,000. Short-term borrowings at 1% interest per
month will be used to accomplish this, if necessary. Borrowings (in multiples of $1,000) will be made at the beginning of the month in which they are needed, with interest for that
month paid at the end of the month. Prepare a cash budget for the quarter ended March 31.
Brewster Corporation
Cash Budget for the Quarter Ended
March 31
January
Beginning cash balance
Cash receipts
Short-term borrowings
Cash available
Cash disbursements
Interest payment
Total cash disbursements
Ending cash balance
$
$
$
$
0
0
0
0 $
0 $
0
0
0 $
$
February
0 $
0
0
0 $
0 $
0
0
0 $
March
0
0
0
0
0
0
0
0
Transcribed Image Text:Prepare Cash Budget For 3 Months Brewster Corporation expects the following cash receipts and disbursements during the first quarter of the year (receipts exclude new borrowings and disbursements exclude interest payments on borrowings since January 1) January February March $280,000 $300,000 $270,000 Cash receipts Cash disbursements 260,000 340,000 280,000 The expected cash balance at January 1, is $62,000. Brewster wants to maintain a cash balance at the end of each month of at least $60,000. Short-term borrowings at 1% interest per month will be used to accomplish this, if necessary. Borrowings (in multiples of $1,000) will be made at the beginning of the month in which they are needed, with interest for that month paid at the end of the month. Prepare a cash budget for the quarter ended March 31. Brewster Corporation Cash Budget for the Quarter Ended March 31 January Beginning cash balance Cash receipts Short-term borrowings Cash available Cash disbursements Interest payment Total cash disbursements Ending cash balance $ $ $ $ 0 0 0 0 $ 0 $ 0 0 0 $ $ February 0 $ 0 0 0 $ 0 $ 0 0 0 $ March 0 0 0 0 0 0 0 0
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