Blue Spruce Corp. prepares monthly cash budgets. Here are relevant data from operating budgets for...
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Accounting
Blue Spruce Corp. prepares monthly cash budgets. Here are relevant data from operating budgets for 2022.
January
February
Sales
$361,000
$400,800
Purchases
121,100
131,300
Salaries
83,500
82,000
Administrative expenses
71,200
74,300
Selling expenses
79,800
86,300
All sales and purchases are on account. Budgeted collections and disbursement data are given below. All other expenses are paid in the month incurred. Administrative expenses include $1,300 of depreciation per month. Other data.
1.
Collections from customers: January $333,100; February $378,200.
2.
Payments for purchases: January $101,800; February $141,900.
3.
Other receipts: January: collection of December 31, 2021, notes receivable $18,300; February: proceeds from sale of securities $5,700.
4.
Other disbursements: February $12,300 cash dividend.
The companys cash balance on January 1, 2022, is expected to be $48,400. The company wants to maintain a minimum cash balance of $61,650. Prepare a cash budget for January and February. (Do not leave any answer field blank. Enter 0 for amounts.)
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