Carla Vista Company expects to have a cash balance of $115.000 on January 1, 2022. These are the relevant monthly budget data for the first two months of 2022. Collections from customers: January $177.500. February $365,000. Payments to suppliers: January $100.000. February $187.500. Wages: January $75.000. February $100.000. Wages are paid in the month they are incurred. Administrative expenses: January $52.500. February $60.000. These costs include depreciation of $2,500 per month. All other costs are paid as incurred. Selling expenses: January $37.500. February $50.000. These costs are exclusive of depreciation. They are paid as incurred. Sales of short-term investments in January are expected to realize $30,000 in cash. Carla Vista Company has a line of credit at a local bank that enables it to borrow up to $62,500. The company wants to maintain a minimum monthly cash balance of $50,000 1 2. 3. 4. 5. 6. Prepare a cash budget for January and February. (List items that increase cash balance first.) CARLA VISTA COMPANY Cash Budget For the Two Months Ending February 28,2022 January Fet Beginning cash balance S 115,000 Add Cash recepts Collections from customers 177,500 30,000 Total receipts 207,500 322,500 Less 100,000 Wages 7,500 Administrative expenses 50,000 i Selling expenses 37,500 Total avaliable cash 195,000 Ending cash balance 127,500 Financing Borrowings Ending cash balance $ 127,500 $ 1. 2. Carla Vista Company expects to have a cash balance of $115.000 on January 1, 2022. These are the relevant monthly budget data for the first two months of 2022 Collections from customers: January $177,500. February $365.000 Payments to suppliers: January $100.000. February $187.500. Wages: January $75.000. February $100.000. Wages are paid in the month they are incurred. Administrative expenses: January $52.500. February $60,000. These costs include depreciation of $2,500 per month. All other costs are paid as incurred. 5. Selling expenses: January $37.500. February $50,000. These costs are exclusive of depreciation. They are paid as incurred. Sales of short-term investments in January are expected to realize $30,000 in cash. Carla Vista Company has a line of credit at a local bank that enables it to borrow up to $62,500. The company wants to maintain a minimum monthly cash balance of $50,000 3. 4 6. Prepare a cash budget for January and February. (List items that increase cash balance first.) CARLA VISTA COMPANY Cash Budget For the Two Months Ending February 28, 2022 January February alance $ 115,000 127,500 Cash receipts > Collections from customers > 177,500 365,000 30,000 Total receipts 207,500 365,000 322,500 492,500 > 100,000 i 187.500 i Wages > 7,500 100.000 Administrative expenses