Noble Corporation prepares monthly cash budgets. Relevant data from operating budgets for 2014 are shown on page 388.

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 $2,000 of depreciation per month.
Other data:
1. Collections from customers: January $279,500; February $298,000.
2. Payment for purchases: January $106,000; February $116,000.
3. Other receipts—January: collection of December 31, 2013, interest receivable $7,500;
February: proceeds from sale of securities $8,000
4. Other disbursements—January: pay $35,000 note payable due January 1, 2014; February: pay $5,000 cash dividend
5. The company’s cash balance on January 1, 2014 is expected to be $52,000. The company wants to maintain a minimum cash balance of $40,000.

Prepare a cash budget for January andFebruary.

  • CreatedApril 07, 2014
  • Files Included
Post your question