You recently began a job as an accounting intern at Reilly Adventures. Your first task was to help prepare the cash budget for February and March. Unfortunately, the computer with the budget file crashed, and you did not have a backup or even a hard 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. (Click the icon to view information on borrowing cash.) Requirements Complete the following cash budget. (For amounts with a $0 balance, make sure to enter "0" in the appropriate input field. Enter cash deficiencies with a minus sign or parentheses. Enter the net total effects of financing with a minus sign when the amount is a net outflow. Round interest expense to the nearest whole dollar.) Beginning cash balance Plus: Cash collections Reilly Adventures Combined Cash Budget February and March February $ 16,700 0 Plus: Cash from sale of plant assets $ 106,800 Total cash available Less: Cash payments (purchase inventory) 47,700 Less: Cash payments (operating expenses) Total cash payments $ 98,200 (1) Ending cash balance before financing More info Reilly Adventures eliminates any cash deficiency by borrowing the exact amount needed from State Street Bank, where the current interest rate is 7%. Reilly Adventures pays interest on its outstanding debt at the end of each month. The company also repays all borrowed amounts at the end of the month as cash becomes available. Print Done - ☑
You recently began a job as an accounting intern at Reilly Adventures. Your first task was to help prepare the cash budget for February and March. Unfortunately, the computer with the budget file crashed, and you did not have a backup or even a hard 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. (Click the icon to view information on borrowing cash.) Requirements Complete the following cash budget. (For amounts with a $0 balance, make sure to enter "0" in the appropriate input field. Enter cash deficiencies with a minus sign or parentheses. Enter the net total effects of financing with a minus sign when the amount is a net outflow. Round interest expense to the nearest whole dollar.) Beginning cash balance Plus: Cash collections Reilly Adventures Combined Cash Budget February and March February $ 16,700 0 Plus: Cash from sale of plant assets $ 106,800 Total cash available Less: Cash payments (purchase inventory) 47,700 Less: Cash payments (operating expenses) Total cash payments $ 98,200 (1) Ending cash balance before financing More info Reilly Adventures eliminates any cash deficiency by borrowing the exact amount needed from State Street Bank, where the current interest rate is 7%. Reilly Adventures pays interest on its outstanding debt at the end of each month. The company also repays all borrowed amounts at the end of the month as cash becomes available. Print Done - ☑
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:You recently began a job as an accounting intern at Reilly Adventures. Your first task was to help prepare the cash budget for February and March. Unfortunately, the computer with the budget file crashed, and
you did not have a backup or even a hard 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.
(Click the icon to view information on borrowing cash.)
Requirements
Complete the following cash budget. (For amounts with a $0 balance, make sure to enter "0" in the appropriate input field. Enter cash deficiencies with a minus sign or parentheses. Enter the net total effects of
financing with a minus sign when the amount is a net outflow. Round interest expense to the nearest whole dollar.)
Beginning cash balance
Plus: Cash collections
Reilly Adventures
Combined Cash Budget
February and March
February
$
16,700
0
Plus: Cash from sale of plant assets
$
106,800
Total cash available
Less: Cash payments (purchase inventory)
47,700
Less: Cash payments (operating expenses)
Total cash payments
$
98,200
(1) Ending cash balance before financing
More info
Reilly Adventures eliminates any cash deficiency by borrowing the exact amount needed from State
Street Bank, where the current interest rate is 7%. Reilly Adventures pays interest on its outstanding debt
at the end of each month. The company also repays all borrowed amounts at the end of the month as cash
becomes available.
Print
Done
-
☑
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