Complete the cash budget, You recently began a job as an

Complete the cash budget

Assignment Help Financial Accounting

Reference no: EM131166745

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

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

Reference no: EM131166745

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