S22-17 (similar to)

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Cross

Company has $13,000 in cash on hand on January 1 and has collected the following budget data:

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Data Table

	January	February
Sales	$1,370,000	$710,000
Cash receipts from customers	851,530	871,400
Cash payments for merchandise inventory	561,500	532,31

Assume Cross has cash payments for selling and administrative expenses including salaries of $44,000 plus commissions of 2% of sales, all paid in the month of sale. The company requires a minimum cash balance of $11,500. Prepare a cash budget for January and February. Will Cross need to borrow cash by the end of February?