13 Requirement 14 1 Complete the cash budget. 15 a. Use parentheses or a minus sign for any cash deficiencies. 16 b. Enter cash inflows as positive values. In the "Financing" section, enter borrowings and repayments as positive values. The "Total effects of financing" is entered as a positive if the borrowings are greater then the payments; and entered as a negative if the payments are greater than the borrowings. c. In the "Financinge" section, c. 17 18 d. For amounts with a zero balance, make sure to enter "-O" in the appropriate cell. 19 The Master Budget Incomplete cash budget 1 2 You recently began a job as an accounting intern at Rockwall Adventures. Your first task was to help prepare the cash budget for February and March. Unfortunately, the computer with the budget file crashed, and you did not have a backup or even a hard copy. You ran a program to salvage bits of data from the budget file. After entering the following data in the budget, you may have just enough information to reconstruct the budget. 4 Rockwall Adventures eliminates any cash deficiency by borrowing the exact amount needed from State Street Bank, where the current interest rate is 6%. Rockwall Adventures pays interest on its outstanding debt at the end of each month. The company also repays all borrowed amounts at the end of the month as cash becomes 6 available. 1 **DATA SHEET - DO NOT ENTER ANSWERS HERE** 2 The partial cash budget follows: Rockwall Adventures Combined Cash Budget February and March 4 February March $16,900$ 8 Beginning cash balance 9 Plus: Cash collections 10 Plus: Cash from sale of plant assets 11 Total cash available 12 Less: Cash payments (purchase inventory) 13 Less: Cash payments (operating expenses) 14 Total cash payments 15 (1) Ending cash balance before financing 16 Minimum cash balance desired 17 Cash excess (deficiency) 18 Financing: 19 Plus: New borrowings 20 Less: Debt repayments 21 Less: Interest payments 22 (2) Total effects of financing 23 Ending cash balance (1) (2) 80,000 2,000 0 107,300$ ? $41,400 47,700 $98,400$ ? $25,100 21,000 21,000