chapter 7 question 7

Ivanhoe Company expects to have a cash balance of $92,000 on January 1,2025. These are the relevant monthly budget data for the first two months of 2025 . 1. Collections from customers: January $142,000 and February $292,000. 2. Payments to suppliers: January $80,000 and February $150,000 3. Wages: January $60,000 and February $80,000. Wages are paid in the month they are incurred. 4. Administrative expenses: January $42,000 and February $48,000. These costs include depreciation of $2,000 per month. All other costs are paid as incurred. 5. Selling expenses: January $30,000 and February $40,000. These costs are exclusive of depreciation. They are paid as incurred. 6. Sales of short-term investments in January are expected to realize $24,000 in cash. Ivanhoe has a line of credit at a local bank that enables it to borrow up to $50,000. The company wants to maintain a minimum monthly cash balance of $40.000. Prepare a cash budget for January and February. (List items that increase cash balance first.)