Marigold Corp prepares monthly cash budgets Here are relevant data from operating budgets for 2017 January February Sales $360,400 $401,700 Purchases 121,900 131,000 Salaries 83,000 81,600 Administrative expenses 71,700 74,300 Selling expenses 78,400 86,600 All sales and purchases are on account Budgeted collections and disbursement data are given below All other expenses are paid in the month incurred except for administrative expenses, which include $1,100 of depreciation per month Other data 1 Collections from customers January $336,800 February $378,600 2 Payments for purchases January $109,600 February $141,100 3 Other receipts January collection of December 31, 2016, notes receivable $18,700 February proceeds from sale of securities $5,300 4 Other disbursements February $12,600 cash dividend The companys cash balance on January 1, 2017, is expected to be $47,900 The company wants to maintain a minimum cash balance of $58,710 Prepare a cash budget for January and February (Do not leave any answer field blank Enter 0 for amounts )

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 12, 2024

Marigold Corp. prepares monthly cash budgets. Here are relevant data from operating budgets for 2017. January February Sales $360,400 $401,700 Purchases 121,900 131,000 Salaries 83,000

Marigold Corp. prepares monthly cash budgets. Here are relevant data from operating budgets for 2017.

	January	February
Sales	$360,400	$401,700
Purchases	121,900	131,000
Salaries	83,000	81,600
Administrative expenses	71,700	74,300
Selling expenses	78,400	86,600

All sales and purchases are on account. Budgeted collections and disbursement data are given below. All other expenses are paid in the month incurred except for administrative expenses, which include $1,100 of depreciation per month. Other data.

1.		Collections from customers: January $336,800; February $378,600.
2.		Payments for purchases: January $109,600; February $141,100.
3.		Other receipts: January: collection of December 31, 2016, notes receivable $18,700; February: proceeds from sale of securities $5,300.
4.		Other disbursements: February $12,600 cash dividend.

The companys cash balance on January 1, 2017, is expected to be $47,900. The company wants to maintain a minimum cash balance of $58,710. Prepare a cash budget for January and February. (Do not leave any answer field blank. Enter 0 for amounts.)