Thomas Company has $10,000 in cash on hand on January 1 and has collected the following budgetdata:
Question:
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.)
January
February
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. Prepae a cash budget for January and February. Will Thomas need to borrow cash by the end of February?
Begin by preparing the cash budget for January, then prepare the cash budget for February. (Complet all input fields. Enter a"0" for any zerobalances.)