Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. crane company expects to have a cash balance of $6

Crane Company expects to have a cash balance of $61,950 on January 1 2017. These...

50.1K

Verified Solution

Question

Accounting

imageimageimage

Crane Company expects to have a cash balance of $61,950 on January 1 2017. These are the elevant monthly budget dat for the rst two months of 201. 1. Collections from customers: January $86,950, February $161,950 2. Payments to suppliers: January $55,950, February $90,950. 3. Wages: January $31,220, February $41,220. Wages are paid in the month they are incurred 4. Administrative expenses: January $22,220, February $25,220. These costs include depreciation of $1,000 per month. All other costs are paid as incurred. 5. Selling expenses: January $16,220, February $21,220. These costs are exclusive of depreciation. They are paid as incurred 6. Sales of short-term investments in January are expected to realize $13,220 in cash. Crane 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 $35,950 Prepare a cash budget for January and February

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students