The Cash Budget
You 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 of 2013. Unfortunately, the computer with the budget file crashed, and you did not have a back-up or even a paper copy.
You, later, 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.
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 pays interest on its outstanding debt at the end of each month. The company, then, 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 Company
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 Payments:
|
|
|
|
Purchase of Inventory
|
?
|
44,000
|
|
Operating Expenses
|
46,000
|
?
|
|
Total Cash Payments
|
97,000
|
?
|
|
Ending Cash Balance Before Financing
|
?
|
22,100
|
|
Less: Minimum Cash balance Required
|
20,000
|
20,000
|
|
Cash Excess (deficiency)
|
?
|
?
|
|
Financing of Cash Deficiency:
|
|
|
|
Borrowing at end of month
|
?
|
?
|
|
Principal Repayment at end of month
|
|
?
|
|
Interest Expense
|
|
?
|
|
Total Effects of Financing
|
?
|
?
|
|
Ending Cash Balance
|
?
|
?
|