Wildhorse Company expects to have a cash balance of $124,200 on January 1, 2022. These are the relevant monthly budget data for the first two months of 2022. 1. Collections from customers: January $191,700, February $394,200.
2. Payments to suppliers: January $108,000, February $202,500.
3. Wages: January $81,000, February $108,000. Wages are paid in the month they are incurred.
4. Administrative expenses: January $56,700, February $64,800. These costs include depreciation of $2,700 per month. All other costs are paid as incurred.
5. Selling expenses: January $40,500, February $54,000. These costs are exclusive of depreciation. They are paid as incurred.
6. Sales of short-term investments in January are expected to realize $32,400 in cash. Wildhorse Company has a line of credit at a local bank that enables it to borrow up to $67,500. The company wants to maintain a minimum monthly cash balance of $54,000.

Answer is explained in the explanation section below.

Explanation:

We need to set up a cash budget for the Wildhorse Company in their first two months of the year 2022.

Company = Wildhorse

For the Two Months Ending February 2022

So, below is the Cash Budget:

                                                            January                        February

Beginning of Cash balance               $124,200                      $67500

Add: Receipts

Sale of Short Term Investments        $32400                             -

Collection from Customers                $191700                        $394200

Total Receipts                                     $224100                      $394200

Total Available Cash                          $348300                      $461700

Less: Disbursements:

Wages                                                 $81000                        $108000

Administrative Expenses                   $51300                        $62100

                                               ($54000-$2700Dep.)      ($64800-$2700Dep.)

Selling Expenses                                $40500                       $54000

Payments to Suppliers                       $108000                      $202500

Total Disbursements                          $280800                     $426600

Excess or (Deficit) of Avble Cash      $67500                        $35100

Financing:

Add: Borrowings                                      -                               $18900

Less: Repayments                                    -                                    -

Ending Cash Balance                          $67500                    $54000

Explanation: As cash availability in February is only $ 35100, the company will borrow $18900 to maintain a minimum balance of $30,000.

Borrowing in February = Minimum Balance - Available Cash

Borrowing in February = $54000-$35100

Borrowing in February = $18900

explanation: doctrine of respondeat superior is a legal doctrine that is commonly used in tort. this principle makes an employer or principal legally responsible for the wrongful acts done by an employee or agent, if such acts occur within the scope of the employment or agency.

the answerr would be 1