Problem
Bastille Corporation prepares monthly cash budgets. Here are relevant data from operating
budgets for
January February
Sales $ $
Purchases $ $
Salaries $ $
Administrative Expenses $ $
Selling Expenses $ $
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
$ of depreciation per month.
Other data
Collections from customers:
January: $
February: $
Payments for purchases:
January: $$
February: $
Other receipts:
January: Collection of December notes receivable $
February: Proceeds from sale of securities $
Other disbursements:
February: $ cash dividends
The companys cash balance on January is expected to be $ The company wants
to maintain a minimum cash balance of $
Instructions
Prepare a cash budget for January and February.
