Enright Company expects to have a cash balance of $57,920on January 1, 2014. These are the relevant monthly budget data for the first two months of 2014.

1.	Collections from customers: January $82,920, February $157,920.
2.	Payments to suppliers: January $51,920, February $86,920.
3.	Wages: January $30,208, February $40,208. Wages are paid in the month they are incurred.
4.	Administrative expenses: January $21,208, February $24,208. These costs include depreciation of $1,000 per month. All other costs are paid as incurred.
5.	Selling expenses: January $15,208, February $20,208. These costs are exclusive of depreciation. They are paid as incurred.
6.	Sales of short-term investments in January are expected to realize $12,208 in cash. Enright 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 $31,920.

Prepare a cash budget for January and February.

Exercise 7-14 3/20/16, 16:12 Exercise 7-14 Enright Company expects to have a cash balance of $57,920 on January 1, 2014. These are the relevant monthly budget data for the first two months of 2014. 1. 2. 3. 4. Collections from customers: January $82,920, February $157,920. Payments to suppliers: January $51,920, February $86,920. Wages: January $30,208, February $40,208. Wages are paid in the month they are incurred. Administrative expenses: January $21,208, February $24,208. These costs include depreciation of $1,000 per month. All other costs are paid as incurred. 5. Selling expenses: January $15,208, February $20,208. These costs are exclusive of depreciation. They are paid as incurred. 6. Sales of short-term investments in January are expected to realize $12,208 in cash. Enright 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 $31,920. Prepare a cash budget for January and February. ENRIGHT COMPANY Cash Budget For the Two Months Ending February 28, 2014 January February $ $ $ $ Add: Less: Add: Less: http://edugen.wileyplus.com/edugen/shared/assignment/test/qview.uni...10entrance1&selected_question=quest2376810&operation=take-question Page 1 of 2 Exercise 7-14 3/20/16, 16:12 SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO VIDEO Question Attempts: 0 of 15 used SAVE FOR LATER SUBMIT ANSWER Copyright 2000-2016 by John Wiley & Sons, Inc. or related companies. All rights reserved. http://edugen.wileyplus.com/edugen/shared/assignment/test/qview.uni...10entrance1&selected_question=quest2376810&operation=take-question Page 2 of 2