Business, 20.10.2021 08:40 leonarddyer4599

Blossom Company expects to have a cash balance of $78,200 on January 1, 2022. These are the relevant monthly budget data for the first two months of 2022 1. Collections from customers: January $120,700, February $248,200.
2. Payments to suppliers: January $68,000, February $127,500.
3. Wages: January $51,000, February $68,000. Wages are paid in the month they are incurred.
4. Administrative expenses: January $35,700, February $40,800. These costs include depreciation of $1,700 per month. All other costs are paid as 4. incurred.
5. Selling expenses: January $25,500, February $34,000. These costs are exclusive of depreciation. They are paid as incurred.
6. Sales of short-term investments in January are expected to realize $20,400 in cash. Blossom Company has a line of credit at a local bank that enables it to borrow up to $42,500. The company wants to maintain a minimum monthly cash balance of $34,000.
Prepare a cash budget for January and February.

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Blossom Company expects to have a cash balance of $78,200 on January 1, 2022. These are the relevant...

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