Mass Company has $13,500 in cash on hand on January 1 and has collected the following...

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Mass Company has $13,500 in cash on hand on January 1 and has collected the following budget data: View the budget data. Assume Mass Company has cash payments for selling and administrative expenses including salaries of $55,000 plus commissions of 3% of sales, all paid in the month of sale. The company requires a minimum cash balance of $8,500. Prepare a cash budget for January and February. Will Mass Company need to borrow cash by the end of February? Begin by preparing the casn budget for January, then prepare the casn Duaget for repruary. (Complete all input neias. Enter a v for any zero balances.) Mass Company Cash Budget Two Months Ended January 31 and February 28 January February Budget Data Beginning cash balance Cash receipts Cash available Cash payments: Purchases of merchandise inventory Selling and administrative expenses Total cash payments Ending cash balance before financing Minimum cash balance desire Projected cash excess (deficiency) Financing: Borrowing Sales Cash receipts from customers Cash payments for merchandise inventory - January February $ 1,390,000 $ 851,740 660,000 871,600 561,100 532,163 Print Done Mass Company has $13,500 in cash on hand on January 1 and has collected the following budget data: View the budget data. Assume Mass Company has cash payments for selling and administrative expenses including salaries of $55,000 plus commissions of 3% of sales, all paid in the month of sale. The company requires a minimum cash balance of $8,500. Prepare a cash budget for January and February. Will Mass Company need to borrow cash by the end of February? Begin by preparing the casn budget for January, then prepare the casn Duaget for repruary. (Complete all input neias. Enter a v for any zero balances.) Mass Company Cash Budget Two Months Ended January 31 and February 28 January February Budget Data Beginning cash balance Cash receipts Cash available Cash payments: Purchases of merchandise inventory Selling and administrative expenses Total cash payments Ending cash balance before financing Minimum cash balance desire Projected cash excess (deficiency) Financing: Borrowing Sales Cash receipts from customers Cash payments for merchandise inventory - January February $ 1,390,000 $ 851,740 660,000 871,600 561,100 532,163 Print Done

Answer rating: 100% (QA)

To prepare the cash budget for January and February we need to consider the cash receipts from custo... View the full answer