Question

Wildhorse Company expects to have a cash balance of $63,300 on January 1, 2017. These are the relevant monthly budget data for the first two months of 2017.

1.		Collections from customers: January $88,300, February $163,300.
2.		Payments to suppliers: January $57,300, February $92,300.
3.		Wages: January $31,740, February $41,740. Wages are paid in the month they are incurred.
4.		Administrative expenses: January $22,740, February $25,740. These costs include depreciation of $1,000 per month. All other costs are paid as incurred.
5.		Selling expenses: January $16,740, February $21,740. These costs are exclusive of depreciation. They are paid as incurred.
6.		Sales of short-term investments in January are expected to realize $13,740 in cash. Wildhorse 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 $37,300.

Answer 1

Answer-:

Cash budget is a budget that show cash receipts and disbursements during the period.

Thankyou...........