Nadia Company expects to have a cash balance of $45,000 on January 1, 2020. Nadia has budgeted the following for the first two months of the year 2020:

1.		Collections from customers: January $89,800; February $109,200.
2.		Payments to suppliers: January $40,100; February $49,900.
3.		Direct labour: January $29,800; February $35,000. Wages are paid in the month they are incurred.
4.		Manufacturing overhead: January $25,100; February $29,900. Overhead costs are paid as incurred.
5.		Selling and administrative expenses: January $15,900; February $21,800. These costs do not include depreciation and they are paid as incurred.
6.		Sales of investments in January are expected to realize $10,100 in cash. Nadia Company wants to keep a minimum monthly cash balance of $20,000.

Prepare a cash budget for January and February.

NADIA COMPANY Cash Budget For 2020
		January		February
Financing borrowing needsCash disbursementsTotal cash availableTotal disbursementsCash receiptsTotal receiptsEnding cash balanceBeginning cash balanceExcess of cash over cash disbursements		$		$
AddLess: Total cash availableFinancing borrowing needsEnding cash balanceTotal receiptsCash receiptsExcess of cash over cash disbursementsBeginning cash balance
Manufacturing overheadLabourPayment to suppliersCollection of notes receivableSale of investmentsCollections from customersPurchase of landSelling and administrative expensesPurchase of equipment
Selling and administrative expensesCollections from customersManufacturing overheadCollection of notes receivablePurchase of landPayment to suppliersSale of investmentsLabourPurchase of equipment
Total cash availableCash receiptsBeginning cash balanceEnding cash balanceFinancing borrowing needsTotal receiptsExcess of cash over cash disbursements
AddLess: Financing borrowing needsCash disbursementsBeginning cash balanceTotal cash availableTotal disbursementsEnding cash balanceExcess of cash over cash disbursements
Selling and administrative expensesSale of investmentsPurchase of equipmentPayment to suppliersCollection of notes receivableLabourCollections from customersManufacturing overheadPurchase of land
LabourCollections from customersSelling and administrative expensesSale of investmentsManufacturing overheadCollection of notes receivablePurchase of equipmentPurchase of landPayment to suppliers
Collections from customersPurchase of landPurchase of equipmentPayment to suppliersManufacturing overheadSale of investmentsCollection of notes receivableSelling and administrative expensesLabour
Purchase of landSelling and administrative expensesPurchase of equipmentPayment to suppliersSale of investmentsLabourManufacturing overheadCollection of notes receivableCollections from customers
Beginning cash balanceExcess of cash over cash disbursementsTotal receiptsEnding cash balanceCash receiptsCash disbursementsTotal disbursementsFinancing borrowing needsTotal cash available
Excess of cash over cash disbursementsCash disbursementsEnding cash balanceCash receiptsBeginning cash balanceTotal disbursementsTotal receiptsTotal cash availableFinancing borrowing needs
Cash disbursementsCash receiptsTotal cash availableExcess of cash over cash disbursementsTotal disbursementsFinancing borrowing needsTotal receiptsBeginning cash balanceEnding cash balance		$		$