REILLY GOLF PARK Cash Budget Two Months Ended May 31 April May Beginning cash balance $ 16,700 Cash receipts 79,900 Cash from sale of plant assets 2,200 Cash available 114,700 Cash payments: Purchase of inventory 43,000 Selling and administrative expenses 47,400 Interest expense Total cash payments 98,400 Ending cash balance before financing 27,200 Minimum cash balance desired (25,000) (25,000) Cash excess (deficioncy) Financing: Borrowing Principal repayments Total effects of financing Ending cash balance
Preparing a financial budget—
You recently began a Job as an accounting intern a Reilly Golf Park. Your first task was to help prepare the cash budget for April and May, Unfortunately, the computer with the budget file crashed, and you did not have a backup or even a paper 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.
Reilly Golf Park eliminates any cash deficiency by borrowing the exact amount needed from First Street Bank, where the current interest rate is 6% per year. Reilly Golf Park first pays interest on its outstanding debt at the end of each month. The company then repays all borrowed amounts at the end of the month with any excess cash above the minimum required but after paying monthly interest expenses. Reilly does not have any outstanding debt on April 1.
Complete the cash budget. Round interest expense to the nearest whole dollar.
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