Business, 12.03.2020 17:26 Peterson6164

Cullumber Company expects to have a cash balance of $58,650 on January 1, 2017. These are the relevant monthly budget data for the first two months of 2017.
1. Collections from customers: January $83,650, February $158,650.
2. Payments to suppliers: January $52,650, February $87,650.
3. Wages: January $31,860 and February $41,860. Wages are paid in the month they are incurred.
4. Administrative expenses: January $22,860 and February $25,860. These costs include depreciation of $1,000 per month. All other costs are paid as incurred.
5. Selling expenses: January $16,860 and February $21,860. These costs are exclusive of depreciation. They are paid as incurred.
6. Sales of short-term investments in January are expected to realize $13,860 in Cash. Cullumber 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 $32,650.

Prepare a cash budget for January and February.

Answers: 3

Show answers

Another question on Business

Business, 22.06.2019 17:30

Which of the following services will be provided by a full-service broker but not by a discount broker? i. research of potential investment opportunities ii. purchase and sale of stock at your request iii. recommendation of investments a. i and iii b. ii only c. iii only d. i, ii, and ii

Answers: 2

Answer

Business, 22.06.2019 21:10

Which of the following statements is (are) true? i. free entry to a perfectly competitive industry results in the industry's firms earning zero economic profit in the long run, except for the most efficient producers, who may earn economic rent. ii. in a perfectly competitive market, long-run equilibrium is characterized by lmc < p < latc. iii. if a competitive industry is in long-run equilibrium, a decrease in demand causes firms to earn negative profit because the market price will fall below average total cost.

Answers: 3

Answer

Business, 22.06.2019 23:30

Which career pathways require workers to train at special academies? a.emts and emergency dispatchers b.crossing guards and lifeguards c.police officers and firefighters d.lawyers and judges

Answers: 3

Answer

Business, 23.06.2019 00:30

Three years ago, the city of recker committed to build a park and music venue by the river. it was expected to cost $2.5 million and be paid for from an additional meals tax in the community. the residents pushed back. local restaurants suffered as people ate out less or patronized restaurants in neighboring communities. the project has stalled, but the town council kept pushing it on. this spring, a flood devastated the venue. the town council appears to have suffered from bias

Answers: 3

Answer

You know the right answer?

Cullumber Company expects to have a cash balance of $58,650 on January 1, 2017. These are the releva...

Questions