You recently began a job as an accounting intern at

Eco Adventures. Your first task was to help prepare the cash budget for February and March. Unfortunately, the computer with the budget file crashed, and you did not have a backup or even a hard copy. You ran a program to salvage bits of data from the budget file. After entering the following data in the budget, you may have just enough information to reconstruct the budget.

(Click the icon to view information on borrowing cash.)

Eco Adventures eliminates any cash deficiency by borrowing the exact amount needed from Caisse Populaire, where the current interest rate is 8%. Eco Adventures pays interest on its outstanding debt at the end of each month. The company also repays all borrowed amounts at the end of the month as cash becomes available.

Requirements

1. Complete the following cash budget

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Eco Adventures Ltd. Cash Budget February and March February March $ $ 16,400 Beginning cash balance Cash collections 80,100 0 2,700 Cash from sale of plant assets 106,800 Cash available Cash payments: Purchases of inventory $ $ 41,600 47,400 Operating expenses Total payments 98,300 (1) Ending cash balance before financing 26,100 23,000 23,000 Minimum cash balance desired Cash excess (deficiency) Financing of cash deficiency: Borrowing (at end of month) Principal repayments (at end of month) Interest expense (2) Total effects of financing Ending cash balance (1) + (2)