Santos Company is preparing a cash budget for February. The company has $19,000 cash at the beginning of February and budgets $72 000 in cash receipts from sales and $100,000 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 CO. Cash Budget February Beginning cash balance Total cash available Preliminary cash balance Loan activity Ending cash balance Loan balance, end of month

Santos Company is preparing a cash budget for February. The company has $19,000 cash at the beginning of February and budgets $72 000 in cash receipts from sales and $100,000 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 CO. Cash Budget February Beginning cash balance Total cash available Preliminary cash balance Loan activity Ending cash balance Loan balance, end of month

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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