Ex. 231

Prepare a cash budget for January and February

Holcomb Company expects to have a cash balance of $43,000 on January 1, 2017 These are the relevant monthly budget data for the first two months of 2017. Collections from customers January $85,000. February $132,000 Payments to suppliers January $40,000, February $50,000 Wages January $34,000, February $40,000 Wages are paid in the month they are incurred. Administrative expenses January $24,000, February $31,000 These costs include depreciation of $1,000 per month All other coals are paid as incurred. Selling expenses January $15,000, February $20,000 These costs are exclusive of depreciation. They are paid as incurred Salas of short-term investments m January are expected to realize $12.000 m cash Holcomb has a line of credit at a local frank that enables it to borrow up to $40,000 The company wants to maintain a minimum monthly cash balance of $25,000