Santos Company is preparing a cash budget for February. The company has $15,000 cash at the beginning of February and budgets $72,000 in cash receipts from sales and $105,000 in cash payments during February. Prepare the cash budget for February assuming the company maintains a $5,000 minimum cash balance and will take a loan if necessary to maintain this balance. The company has no loans outstanding on February 1. (Negative cash balances, if any, should be indicated with minus sign.)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Santos Company is preparing a cash budget for February. The company has $15,000 cash at the beginning of February and budgets
$72,000 in cash receipts from sales and $105,000 in cash payments during February. Prepare the cash budget for February assuming
the company maintains a $5,000 minimum cash balance and will take a loan if necessary to maintain this balance. The company has
no loans outstanding on February 1. (Negative cash balances, if any, should be indicated with minus sign.)
SANTOS COMPANY
Cash Budget
Beginning cash balance
Total cash available
Preliminary cash balance
Loan activity
Ending cash balance
Loan balance, end of month
February
Transcribed Image Text:Santos Company is preparing a cash budget for February. The company has $15,000 cash at the beginning of February and budgets $72,000 in cash receipts from sales and $105,000 in cash payments during February. Prepare the cash budget for February assuming the company maintains a $5,000 minimum cash balance and will take a loan if necessary to maintain this balance. The company has no loans outstanding on February 1. (Negative cash balances, if any, should be indicated with minus sign.) SANTOS COMPANY Cash Budget Beginning cash balance Total cash available Preliminary cash balance Loan activity Ending cash balance Loan balance, end of month February
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