You recently began a job as an accounting intern at RaymondRaymond 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. RaymondRaymond Adventures eliminates any cash deficiency by borrowing the exact amount needed from State Street? Bank, where the current interest rate is 7 %7%. RaymondRaymond 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.

Combined Cash Budget February and March February March Beginning cash balance Plus: Cash collections Plus: Cash from sale of plant assets Total cash available Less: Cash payments (purchase inventory) Less: Cash payments (operating expenses) Total cash payments (1) Ending cash balance before financing Minimum cash balance desired Cash excess (deficiency) 16,500 80,200 2,100 107,100 41,500 47,900 98,700 22,900 20,000 20,000 Plus: New borrowings Less: Debt repayments Less: Interest payments (2) Total effects of financing Ending cash balance(1(2)