You are recently began a job as an accounting intern at Dejesus Delivery company in Queens, New York. Your first task was to help prepare the Cash budget for April and May 2013. Unfortunately, the computer with the budget file crashed, and you did not have back-up or even a paper copy.

You, later, ran a program to salvage bits or data from the budget file. After entering the following data in the budget, you may have just enough information to reconstruct the budget.

Dejesus Delivery Company eliminates any cash deficiency by borrowing the exact amount needed from Queens County Saving Bank where the current interest rate is 6%. Dejesus Delivery first pay interest on its outstanding debt at the end of each month. The Company , the repays all borrowed amounts at the end of each month with any excess cash above the minimum required, but after paying monthly interest expenses.

Required: Complete the cash budget

Dejesus delivery Cash budget

April and May 2013

ITEM APRIL MAY

Beginning Cash Balance $18,000 ?

Cash Collections ? $ 82,000

Cash From sales of plant assets --- 2,100

Cash available $113,000 ?

Cash payment:

Purchase of inventory ? 44,000

Operating Expenses 46,000 ?

Total Cash payment 97,000 ?

Ending cash balance before financing ? 22,100

Les: Minimum cash balance required 20,000 20,000

Cash Excess (deficiency) ? ?

Financing of cash deficiency:

Borrowing at the end of the month ? ?

Principal repayment at the end of the month ?

Interest expense ?

Total financing ? ?

Ending cash balance ? ?