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Rigley Company expects to have a cash balance of $46,000 on January 1, 2022. These are the relevant monthly budget data for the first two months of 2022. 1. Collections from customers: January $71.000, February $146.000, 2. Payments to suppliers: January $40,000, February $75.000. 3. Wages: January $30,000, February $40,000. Wages are paid in the month they are incurred. 4. Administrative expenses: January $21.000. February $24,000. These costs include depreciation of $1.000 per month. All other costs are paid as incurred. 5. 6. Selling expenses: January $15,000, February $20,000. These costs are exclusive of depreciation. They are paid as incurred. Sales of short-term investments in January are expected to realize $12.000 in cash Rigley Company has a line of credit at a local bank that enables it to borrow up to $25,000. The company wants to maintain a minimum monthly cash balance of $20,000

Rigley Company expects to have a cash balance of $46,000 on January 1, 2022. These are the relevant monthly budget data for the first two months of 2022. 1. Collections from customers: January $71.000, February $146.000, 2. Payments to suppliers: January $40,000, February $75.000. 3. Wages: January $30,000, February $40,000. Wages are paid in the month they are incurred. 4. Administrative expenses: January $21.000. February $24,000. These costs include depreciation of $1.000 per month. All other costs are paid as incurred. 5. 6. Selling expenses: January $15,000, February $20,000. These costs are exclusive of depreciation. They are paid as incurred. Sales of short-term investments in January are expected to realize $12.000 in cash Rigley Company has a line of credit at a local bank that enables it to borrow up to $25,000. The company wants to maintain a minimum monthly cash balance of $20,000

FINANCIAL ACCOUNTING
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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Question 5 of 5 RIGLEY COMPANY Cash Budget January /1 February
Transcribed Image Text:Question 5 of 5 RIGLEY COMPANY Cash Budget January /1 February
Current Attempt in Progress Rigley Company expects to have a cash balance of $46,000 on January 1 2022. These are the relevant monthly budget data for the first two months of 2022. 1. 2. 3. 4. 5. 6. Collections from customers January $71,000, February $146.000. Payments to suppliers: January $40,000, February $75.000. Wages: January $30,000, February $40,000. Wages are paid in the month they are incurred. Administrative expenses: January $21,000. February $24,000. These costs include depreciation of $1.000 per month. All other costs are paid as incurred. Selling expenses: January $15,000, February $20,000. These costs are exclusive of depreciation. They are paid as incurred. Sales of short-term investments in January are expected to realize $12.000 in cash Rigley Company has a line of credit at a local bank that enables it to borrow up to $25,000. The company wants to maintain a minimum monthly cash balance of $20,000 Prepare a cash budget for January and February (List items that increase cash balance first.J RIGLEY COMPANY Cash Budget January February
Transcribed Image Text:Current Attempt in Progress Rigley Company expects to have a cash balance of $46,000 on January 1 2022. These are the relevant monthly budget data for the first two months of 2022. 1. 2. 3. 4. 5. 6. Collections from customers January $71,000, February $146.000. Payments to suppliers: January $40,000, February $75.000. Wages: January $30,000, February $40,000. Wages are paid in the month they are incurred. Administrative expenses: January $21,000. February $24,000. These costs include depreciation of $1.000 per month. All other costs are paid as incurred. Selling expenses: January $15,000, February $20,000. These costs are exclusive of depreciation. They are paid as incurred. Sales of short-term investments in January are expected to realize $12.000 in cash Rigley Company has a line of credit at a local bank that enables it to borrow up to $25,000. The company wants to maintain a minimum monthly cash balance of $20,000 Prepare a cash budget for January and February (List items that increase cash balance first.J RIGLEY COMPANY Cash Budget January February
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