Blossom Company expects to have a cash balance of $78,200 on January 1, 2025. These are the relevant monthly budget data for the first two months of 2025. 1. Collections from customers: January $120,700 and February $248,200. Payments to suppliers: January $68,000 and February $127,500. Wages: January $51,000 and February $68,000. Wages are paid in the month they are incurred. Administrative expenses: January $35,700 and February $40,800. These costs include depreciation of $1,700 per month. All other costs are paid as incurred. 2. 3. 4. 5. 6. Selling expenses: January $25,500 and February $34,000. These costs are exclusive of depreciation. They are paid as incurred. Sales of short-term investments in January are expected to realize $20,400 in cash. Blossom has a line of credit at a local bank that enables it to borrow up to $42,500. The company wants to maintain a minimum monthly cash balance of $34,000.

Blossom Company expects to have a cash balance of $78,200 on January 1, 2025. These are the relevant monthly budget data for the first two months of 2025. 1. Collections from customers: January $120,700 and February $248,200. 2. Payments to suppliers: January $68,000 and February $127,500. 3. Wages: January $51,000 and February $68,000. Wages are paid in the month they are incurred. 4. Administrative expenses: January $35,700 and February $40,800. These costs include depreciation of $1,700 per month. All other costs are paid as incurred. 5. Selling expenses: January $25,500 and February $34,000. These costs are exclusive of depreciation. They are paid as incurred. 6. Sales of short-term investments in January are expected to realize $20,400 in cash. Blossom has a line of credit at a local bank that enables it to borrow up to $42,500. The company wants to maintain a minimum monthly cash balance of $34,000. BLOSSOM COMPANY Cash Budget For the Two Months Ending February 28, 2025 January February $ $ Excess (deficiency) of avaltable cash over disbursements: Financing