You recently began a job as an accounting intern at Randell Adventures. Your first task was...
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You recently began a job as an accounting intern at Randell 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 program 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. Randell Adventures eliminates any cash deficiency by borrowing the exact amount needed from State Street Bank, where the current interest rate is 8%. Randell Adventures pays interest on its outstanding debt at the end of each month. The company also repays all borrowed amounts at the end of the month as cash becomes available. Randell Adventures Cash Budget February and March February March Beginning cash balance $ 16,600 $ ? Plus: Cash collections ? 80,000 2,200 Plus: Cash from sale of plant assets 2$ 106,700 $ ? Total cash available %24 106,700 $ ? Total cash available Less: Cash payments (purchase inventory) $ ? $ 41,200 Less: Cash payments (operating expenses) 47,800 Total cash payments 98,000 $ ? (1) Ending cash balance before financing $ ? $ 26,700 24,000 24,000 Minimum cash balance desired $ ? $ ? Cash excess (deficiency) Financing: Minimum cash balance desired 24,000 24,000 $ ? $ ? Cash excess (deficiency) Financing: Plus: New borrowings $ ? $ ? Less: Debt repayments ? ? ? Less: Interest payments (2) Total effects of financing $ ? $ ? $ ? $ ? Ending cash balance (1) + (2) You recently began a job as an accounting intern at Randell 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 program 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. Randell Adventures eliminates any cash deficiency by borrowing the exact amount needed from State Street Bank, where the current interest rate is 8%. Randell Adventures pays interest on its outstanding debt at the end of each month. The company also repays all borrowed amounts at the end of the month as cash becomes available. Randell Adventures Cash Budget February and March February March Beginning cash balance $ 16,600 $ ? Plus: Cash collections ? 80,000 2,200 Plus: Cash from sale of plant assets 2$ 106,700 $ ? Total cash available %24 106,700 $ ? Total cash available Less: Cash payments (purchase inventory) $ ? $ 41,200 Less: Cash payments (operating expenses) 47,800 Total cash payments 98,000 $ ? (1) Ending cash balance before financing $ ? $ 26,700 24,000 24,000 Minimum cash balance desired $ ? $ ? Cash excess (deficiency) Financing: Minimum cash balance desired 24,000 24,000 $ ? $ ? Cash excess (deficiency) Financing: Plus: New borrowings $ ? $ ? Less: Debt repayments ? ? ? Less: Interest payments (2) Total effects of financing $ ? $ ? $ ? $ ? Ending cash balance (1) + (2)
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Backyard Adventures Cash budget Febuary and march Febuary March Begin... View the full answer
Related Book For
Financial and Managerial Accounting
ISBN: 978-0132497978
3rd Edition
Authors: Horngren, Harrison, Oliver
Posted Date:
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