Sheridan Company expects to have a cash balance of $59,450 on January 1, 2017. These are...

  

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Sheridan Company expects to have a cash balance of $59,450 on January 1, 2017. These are the relevant monthly budget data for the first two months of 2017. 1. Collections from customers: January $84,450, February $159,450. 2. Payments to suppliers: January $53,450, February $88,450. 3. Wages: January $30,400, February $40,400. Wages are paid in the month they are incurred. 4. Administrative expenses: January $21,400, February $24,400. These costs include depreciation of $1,000 per month. All other costs are paid as incurred. 5. Selling expenses: January $15,400, February $20,400. These costs are exclusive of depreciation. They are paid as incurred. 6. Sales of short-term investments in January are expected to realize $12,400 in cash. Sheridan Company has a line of credit at a local bank that enables it to borrow up to $25,000. The company wants to maintain a minimum monthly cash balance of $33,450. Prepare a cash budget for January and February. F F Beginning cash balance Add X SHERIDAN COMPANY Cash Budget For the Two Months Ending February 28, 2017 Collections from customers. Collections from customers Sale of short-term investments January 59540 84450 12400 February 159450 X M Total available cash Less M Less Less Cash disbursements Payments to suppliers x Wages Total disbursements Administrative expenses Excess (deficiency) of available cash over disbursements Selling expenses Financing Borrowings Ending cash balance 0 000000 000 0 0000.00 0.00 Sheridan Company expects to have a cash balance of $59,450 on January 1, 2017. These are the relevant monthly budget data for the first two months of 2017. 1. Collections from customers: January $84,450, February $159,450. 2. Payments to suppliers: January $53,450, February $88,450. 3. Wages: January $30,400, February $40,400. Wages are paid in the month they are incurred. 4. Administrative expenses: January $21,400, February $24,400. These costs include depreciation of $1,000 per month. All other costs are paid as incurred. 5. Selling expenses: January $15,400, February $20,400. These costs are exclusive of depreciation. They are paid as incurred. 6. Sales of short-term investments in January are expected to realize $12,400 in cash. Sheridan Company has a line of credit at a local bank that enables it to borrow up to $25,000. The company wants to maintain a minimum monthly cash balance of $33,450. Prepare a cash budget for January and February. F F Beginning cash balance Add X SHERIDAN COMPANY Cash Budget For the Two Months Ending February 28, 2017 Collections from customers. Collections from customers Sale of short-term investments January 59540 84450 12400 February 159450 X M Total available cash Less M Less Less Cash disbursements Payments to suppliers x Wages Total disbursements Administrative expenses Excess (deficiency) of available cash over disbursements Selling expenses Financing Borrowings Ending cash balance 0 000000 000 0 0000.00 0.00

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prepare a cash budget for January and February as follows prepare a cash bu... View the full answer