Business, 23.03.2020 19:32 trueeriksonweav
Carla Vista Company expects to have a cash balance of $64,400 on January 1, 2022. These are the relevant monthly budget data for the first two months of 2022.MAKE A CASH BUDGET1. Collections from customers: January $99,400, February $204,400.2. Payments to suppliers: January $56,000, February $105,000.3. Wages: January $42,000, February $56,000. Wages are paid in the month they are incurred.4. Administrative expenses: January $29,400, February $33,600. These costs include depreciation of $1,400 per month. All other costs are paid as incurred.5. Selling expenses: January $21,000, February $28,000. These costs are exclusive of depreciation. They are paid as incurred.6. Sales of short-term investments in January are expected to realize $16,800 in cash. Carla Vista Company has a line of credit at a local bank that enables it to borrow up to $35,000. The company wants to maintain a minimum monthly cash balance of $28,000.
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Carla Vista Company expects to have a cash balance of $64,400 on January 1, 2022. These are the rele...
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