..ooo Verizon 1796 12:02 PM edugen.wileyplus.com Exercise 7-14 a Your answer is
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..ooo Verizon 1796 12:02 PM edugen.wileyplus.com Exercise 7-14 a Your answer is partially correct. Try again. Enright Company expects to have a cash balance of $61,200 on January 1, 2014. These are the relevant monthly budget data for the first two months of 2014. 1. Collections from customers: January $86,200, February $161,200. s Wages: January $30,359, February $40,359. Wages are paid in the month they are Payments to suppliers: January $55,200, February $90,200. incurred. Administrative expenses: January $21,359, February $24,359. These costs include depreciation of $1,000 per month. All other costs are paid as incurred s Selling expenses: January $15,359, February $20,359. These costs are exclusive of depreciation. They are paid as incurred. Sales of short-term investments in January are expected to realize $12,359 in cash. Enright 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 $35,200 Prepare a cash budget for January and February. ENRIGHT COMPA Cash Budget For the Two Months Ending February 28, 201Explanation / Answer
cash Budget For the two months ending Feb 28,2014 January February Beginning cash Balance 61200 38482 Add: Cash receipts Collection from Customers 86200 161200 Sale of short term investments 12359 0 Total cash receipts 98559 161200 Total available cash C 159759 199682 Less: Cash Disbursements Payment to suppliers 55200 90200 Wages paid 30359 40359 Administratives Expenses 20359 23359 Selling Expenses 15359 20359 Total cash Disbursements D 121277 174277 Excess (deficiency) of available cash over disbursements C-D 38482 25405 Add:Borrowings 0 9795 Less: Repayments 0 0 Ending cash Balance 38482 35200
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