QS 20-23 (Algo) Cash budget LO P2 Santos Company is preparing a cash budget for February. The company has $13,000 cash at the beginning of February and budgets $69,000 in cash receipts from sales and $115,000 in cash payments during February. Prepare the cash budget for February assuming the company maintains a $6,000 minimum cash balance and will take a loan if necessary to maintain this balance. The company has no loans outstanding on February 1. (Negative cash balances, if any, should be indicated with minus sign.) Answer is complete but not entirely correct. SANTOS COMPANY Cash Budget February Beginning cash balance $ 13,000 Add: Cash receipts from sales 69,000 Total cash available 82,000 Less: Cash payments 115,000 Preliminary cash balance $ (33,000) Loan activity Additional loan $ 27,000 x Ending cash balance $ 6,000 Loan balance, end of month $ 27,000