S22-17 (similar to)Question Help

Thomas Company has $10,000 in cash on hand on January 1 and has collected the following budgetdata:

(Click the icon to view the budgetdata.)

Data Table

January IS THE FIRST ONE

February IS THE SECOND ONE

Sales

$1,330,000

$640,000

Cash receipts from customers

851,480

871,500

Cash payments for merchandise inventory

562,000

532,552

Assume Thomas has cash payments for selling and administrative expenses including salaries of $60,000 plus commissions of 1% ofsales, all paid in the month of sale. The company requires a minimum cash balance of $9,000. Pre..pare a cash budget for January and February. Will Thomas need to borrow cash by the end of February?