pharoah comoanh expects to have a cash balance of $64,800 on janurary 1,2017. these are the relevent monthly budget data for the first two months

Pharoah Company expects to have a cash balance of $64,890 on January 1, 2017. These are the relevant monthly budget data for the first two months of 2017. 1. 2. 3. 4. Collections from customers: January $89,800, February $164.800. Payments to suppliers: January $58,800, February $93,800, Wages: January $30,530, February $40,530 Wages are paid in the month they are incurred. Administrative expenses: January $21,530, February $24.530. These costs include depreciation of $1.000 per month. All other costs are paid as incurred. Selling expenses: January $15,530. February $20,530. These costs are exclusive of depreciation. They are paid as incurred. Sales of short-term investments in January are expected to realize $12,530 in cash. Pharoah Company 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 $38,800 5. 6. Prepare a cash budget for January and February PHAROAH COMPANY Cash Budget For the Two Months Ending February 28, 2017 : February January 6500 inip cash balance January February 64800 $ ining cash balance Cash receipts Collections from customers 89800 16800 Sale of short-term investments 16480 Total receipts available cash Cash disbursements Payments to suppliers Wages Administrative expenses Selling expenses Total disbursements Total receipts Total available cash Less : Cash disbursements Payments to suppliers Wages Administrative expenses Selling expenses Total disbursements Excess (deficiency) of available cash over disbursements : Financing Add: Borrowings Less : Repayments $ Ending cash balance