Edge Soccer Programs Cash Budget For the Two Months Ended February 28 January February Total Beginning...

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Edge Soccer Programs Cash Budget For the Two Months Ended February 28 January February Total Beginning cash balance Cash receipts from customers $10,500 $11,500 $10,500 $11,000 $15.200 $26,200 Collection of note receivable $8,500 $0 $8,500 Cash available $30,000 $26.700 $45,200 Cash payments: Equipment purchases $15,600 $14,800 $30,400 Selling and administrative expenses $2,900 $2,900 $5,800 Total cash payments $18,500 $17,700 $36,200 Ending cash balance before financing $11,500 $9.000 $9,000 Minimum cash balance desired $10,000 $10,000 $10.000 Projected cash excess (deficiency) Financing: Borrowing Repayment of principal Total effects of financing Ending cash balance $1,500 -$1,000 -$1,000 $0 $1,000 $1,000 $0 $0 $0 $0 $1,000 $1,000 $11,500 $10,000 $10,000 Budget in Service Company (Cash Budget) Edge Soccer Program (Edge) began the year with a cash balance of $10,500. The budget forecasts that collections from customers owed to the company will be $11,000 in January and $15,200 in February. The soccer program is also supposed to receive $8,500 on a note receivable from a soccer club that owes Edge for training players in January. Edge plans to purchase soccer equipment in January and February with cash. The budgeted amounts of the purchases are $15,600 in January and $14,800 in February. Edge's operating costs is $2,900 per month. Edge must maintain a minimum cash balance of $10,000 in their back account at all times. If the amount in their bank account falls below $10,000, then the bank extends credit to Edge immediately in multiples of $1,000. Edge pays back any amounts borrowed each quarter in payments of $2,000 plus 4% interest. The first payment occurs three (3) months after the bank has extended Edge the credit. Requirement Prepare a cash budget for January and February using the Excel template provided in the assignment instructions. Edge Soccer Programs Cash Budget For the Two Months Ended February 28 January February Total Beginning cash balance Cash receipts from customers $10,500 $11,500 $10,500 $11,000 $15.200 $26,200 Collection of note receivable $8,500 $0 $8,500 Cash available $30,000 $26.700 $45,200 Cash payments: Equipment purchases $15,600 $14,800 $30,400 Selling and administrative expenses $2,900 $2,900 $5,800 Total cash payments $18,500 $17,700 $36,200 Ending cash balance before financing $11,500 $9.000 $9,000 Minimum cash balance desired $10,000 $10,000 $10.000 Projected cash excess (deficiency) Financing: Borrowing Repayment of principal Total effects of financing Ending cash balance $1,500 -$1,000 -$1,000 $0 $1,000 $1,000 $0 $0 $0 $0 $1,000 $1,000 $11,500 $10,000 $10,000 Budget in Service Company (Cash Budget) Edge Soccer Program (Edge) began the year with a cash balance of $10,500. The budget forecasts that collections from customers owed to the company will be $11,000 in January and $15,200 in February. The soccer program is also supposed to receive $8,500 on a note receivable from a soccer club that owes Edge for training players in January. Edge plans to purchase soccer equipment in January and February with cash. The budgeted amounts of the purchases are $15,600 in January and $14,800 in February. Edge's operating costs is $2,900 per month. Edge must maintain a minimum cash balance of $10,000 in their back account at all times. If the amount in their bank account falls below $10,000, then the bank extends credit to Edge immediately in multiples of $1,000. Edge pays back any amounts borrowed each quarter in payments of $2,000 plus 4% interest. The first payment occurs three (3) months after the bank has extended Edge the credit. Requirement Prepare a cash budget for January and February using the Excel template provided in the assignment instructions.