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Bramble Corp. prepares monthly cash budgets. Here are relevant data from operating budgets for 2017. January...

Bramble Corp. prepares monthly cash budgets. Here are relevant data from operating budgets for 2017. January February Sales $ 361,300 $ 401,400 Purchases 120,400 132,000 Salaries 83,000 81,100 Administrative expenses 70,200 73,600 Selling expenses 80,000 87,400 All sales and purchases are on account. Budgeted collections and disbursement data are given below. All other expenses are paid in the month incurred except for administrative expenses, which include $ 1,000 of depreciation per month. Other data. 1. Collections from customers: January $ 333,800; February $ 378,000. 2. Payments for purchases: January $ 102,600; February $ 142,300. 3. Other receipts: January: collection of December 31, 2016, notes receivable $ 18,700; February: proceeds from sale of securities $ 5,700. 4. Other disbursements: February $ 12,500 cash dividend. The company’s cash balance on January 1, 2017, is expected to be $ 48,700. The company wants to maintain a minimum cash balance of $ 63,330. Prepare a cash budget for January and February

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Answer #1

Cash budget for the month of January & February

Particulars January February
A Beginning Cash balance 48700
Cash receipts :
B Collection from customer 333800 378000
C . Notes received realized in cash 18700 0
D . Proceeds from sale of securities 0 5700
E. Cash available (A+B+C+D) 401200 450100
Cash payment :
F . Payment for purchases 102600 142300
G . Salaries 83000 81100
H. Administrative exp 69200 (70200-1000) 72600 (73600-1000)
I . Selling exp 80000 87400
J. Cash dividend 0 12500
K . Total cash payments (F+G+H+I+J) 334800 395900
L Cash balance after paying all exp. 66400 54200
M Min. Required balance 63330 63330
N Total borrowing required (M-L)[ignore negative value] - 9130
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