You recently began a job as an accounting intern at Backyard 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 pro- gram 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.
Backyard Adventures eliminates any cash deficiency by borrowing the exact amount needed from a local bank, where the current interest rate is 6%. Backyard Adventures pays interest on its outstanding debt at the end of each month. The company also repays all bor- rowed amounts at the end of the month, as cash becomes available.
Requirement
Complete the following cash budget:

Transcribed Image Text:

Backyard Adventures, LTD. Cash Budget February and March FebruaryMarch S 16,500 Beginning cash balance Cash collections Cash from sale of plant assets Cash available Cash payments: 80,000 1,900 106,500 Purchase of inventory Operating expenses $ ? 41,100 47,400 98,300 Total payments (1) Ending cash balance before financing 23,700 Minimum cash balance desired Cash excess (deficiency) Financing of cash deficiency: (21,000)(21,000) Borrowing (at end of month) Principal repayments (at end of month) Interest expense (2) Total effects of financing Ending cash balance (1)+ 2)