You recently began a job as an accounting intern at Reilly Golf Park. Your first task was to help prepare the cash budget for April and May. Unfortunately, the computer with the budget file crashed, and you did not have a backup or even a paper 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.

Reilly Golf Park eliminates any cash deficiency by borrowing the exact amount needed from First Street Bank, where the current interest rate is 6% per year. Reilly Golf Park first pays interest on its outstanding debt at the end of each month. The company then repays all borrowed amounts at the end of the month with any excess cash above the minimum required but after paying monthly interest expenses. Reilly does not have any outstanding debt on April 1. Complete the cash budget.

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REILLY GOLF PARK Two Months Ended May 31 May Beginning cash balance Cash receipts Cash from sale of plant assets Cash available Cash payments: 18,000 82,000 2,100 113,000 Purchase of inventory 44,000 Selling and administrative expenses 46,000 Interest expense Total cash payments Ending cash balance before financing Minimum cash balance desired Cash excess (deficiency) 97,000 22,100 (20,000) (20,000) Borrowing Principal repayments Total offects of financing Ending cash balance