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E7.17 (LO 4), AP Rigley Company expects to have a cash balance of $46,000 on...

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Accounting

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E7.17 (LO 4), AP Rigley Company expects to have a cash balance of $46,000 on January 1, 2022. These are the relevant monthly budget data for the first two months of 2022. Prepare a cash budget for two months. 1. Collections from customers: January $71,000 and February $146,000. 2. Payments to suppliers: January $40,000 and February $75,000. 3. Wages: January $30,000 and February $40,000. Wages are paid in the month they are incurred. 4. Administrative expenses: January $21,000 and February $24,000. These costs include depreciation of $1,000 per month. All other costs are paid as incurred. 5. Selling expenses: January $15,000 and February $20,000. These costs are exclusive of depreciation. They are paid as incurred. 6. Sales of short-term investments in January are expected to realize $12,000 in cash. Rigley 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 $20,000

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