You recently began a job as an accounting intern at Big Sky 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.) Requirements 1. Complete the following cash budget. (For amounts with a zero balance, make sure to enter "O" in the appropriate cell. Enter cash deficiencies with a minus sign or parentheses. Enter the net total effects of financing with a minus sign or parentheses when the amount is a net outflow. Round the interest expense to the nearest whole dollar.) Big Sky Adventures Ltd. Cash Budget February and March More Info February March Beginning cash balance $ 17,000 Cash collections 80,400 2,300 Big Sky Adventures eliminates any cash deficiency by borrowing the exact amount needed from Caisse Populaire, where the current interest rate is 8%. Big Sky 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. 0 Cash from sale of plant assets 107,600 Cash available Print Done Cash payments: Purchases of inventory $ 41,600 47,500 Operating expenses 97,800 Total payments (1) Ending cash balance before financing 24,100 21,000 21,000 Minimum cash balance desired You recently began a job as an accounting intern at Big Sky 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.) Requirements 1. Complete the following cash budget. Cash collections 80,400 0 Cash from sale of plant assets 2,300 Cash available 107,600 Cash payments: Purchases of inventory $ 41,600 More Info Operating expenses 47,500 97,800 Total payments (1) Ending cash balance before financing 24,100 21,000 Big Sky Adventures eliminates any cash deficiency by borrowing the exact amount needed from Caisse Populaire, where the current interest rate is 8%. Big Sky 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. Minimum cash balance desired 21,000 Print Done Cash excess (deficiency) Financing of cash desciency: Borrowing (at end of month) Principal repayments (at end of month) Interest expense (2) Total effects of financing Ending cash balance (1) + (2)
