You recently began a job as an accounting intern at Raymond 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 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 Complete the following cash budget. (For amounts with a $0 balance, make sure to enter "o" in the appropriate input field. Enter cash deficiencies with a minus sign or parentheses. Enter the net total effects of financin minus sign when the amount is a net outflow. Round interest expense to the nearest whole dollar.) Raymond Adventures Combined Cash Budget February and March February S 16,300 Beginning cash balance Plus: Cash collections 0 i More Info S 106,400 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 47,100 Raymond Adventures eliminates any cash deficiency by borrowing the exact amount needed from State Street Bank, where the current interest rate is 7%. Raymond 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. S 97,800 23,000 Print Done Cash excess (deficiency) Financing Plus: New borrowings Less: Debt repayments Less: Interest payments (2) Total effects of financing Ending cash balance (1) + (2) Raymond Adventures Cash Budget February and March February March Beginning cash balance $ 16,300 $ ? Plus: Cash collections ? 79,800 1,800 0 Plus: Cash from sale of plant assets $ 106,400 $ ? Total cash available Less: Cash payments (purchase inventory) 41,500 $ ? $ 47,100 ? Less: Cash payments (operating expenses) $ 97,800 $ ? Total cash payments (1) Ending cash balance before financing $ ? $ 23,000 25,500 23,000 Minimum cash balance desired $ ? $ ? Cash excess (deficiency) Financing: Plus: New borrowings Less: Debt repayments $ ? $ ? ? ? ? ? Less: Interest payments $ ? $ ? (2) Total effects of financing $ ? $ ? Ending cash balance (1) + (2)
