Problem $2$

Bastille Corporation prepares monthly cash budgets. Here are relevant data from operating

budgets for $2025$

January February

Sales $$360,000$ $$400,000$

Purchases $$120,000$ $$130,000$

Salaries $$84,000$ $$81,000$

Administrative Expenses $$72,000$ $$75,000$

Selling Expenses $$79,000$ $$88,000$

All sales and purchases are on account. Budgeted collections and disbursement data are given

below. All other expenses are paid in the month incurred. Administrative expenses include

$$1,000$ of depreciation per month.

Other data

$1.$ Collections from customers:

January: $$326,000$

February: $$378,00$

$2.$ Payments for purchases:

January: $$$110,000$

February: $$135,000$

$3.$ Other receipts:

January: Collection of December $31,2024,$ notes receivable $$15,000$

February: Proceeds from sale of securities $$4,000$

$4.$ Other disbursements:

February: $$10,000$ cash dividends

The company$$s cash balance on January $1,2025,$ is expected to be $$46,000.$ The company wants

to maintain a minimum cash balance of $$40,000.$

Instructions

Prepare a cash budget for January and February.