You recently began a job as an accounting intern at Regis Adventures. Your first task was to help prepare the cash budget for February and March. Unfortunately, the computer with the budgetile 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 justenough information to reconstruct the budget.(Click the icon to view information on borrowing cash.)RequirementsComplete the following cash budget. (For amounts with a $0 balance, make sure to enter "0" in the appropriate input field. Enter cash deficiencies with a minus sign or parentheses. Enter the nettotal effects of financing with a minus sign when the amount is a net outflow. Round interest expense to the nearest whole dollar.)Regis Adventures eliminates any cash deficiency by borrowing the exact amount needed from StateStreet Bank, where the current interest rate is 6%. Regis Adventures pays interest on its outstanding debtat the end of each month. The company also repays all borrowed amounts at the end of the month as cashbecomes available.Beginning cash balancePlus: Cash collections$16,700More info0Plus: Cash from sale of plant assets$106,700Total cash availableLess: Cash payments (purchase inventory)Less: Cash payments (operating expenses)47,50097,600Total cash payments(1) Ending cash balance before financing25,000Minimum cash balance desiredCash excess (deficiency)Financing:Plus: New borrowingsLess: Debt repaymentsLess: Interest payments(2) Total effects of financingEnding cash balance (1) + (2)PrintDone

A cash budget is a plan for incoming and outgoing funds that aids in effective money management and…

bu recently began a job as an accounting intern at Regis Adventures. Your first task was to help prepare the cash budget for February and March. Unfortunately, the computer with the budget e 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 hough information to reconstruct the budget. (Click the icon to view information on borrowing cash.) equirements omplete the following cash budget. (For amounts with a $0 balance, make sure to enter "0" in the appropriate input field. Enter cash deficiencies with a minus sign or parentheses. Enter the net tal effects of financing with a minus sign when the amount is a net outflow. Round interest expense to the nearest whole dollar.) eginning cash balance $ 16,700 More info Plus: Cash collections Plus: Cash from sale of plant assets $ 106,700 Total cash available Less: Cash payments (purchase inventory) 47,500 Less: Cash payments (operating expenses) $ 97,600 Total cash payments 1) Ending cash balance before financing 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) 25,000 Regis Adventures eliminates any cash deficiency by borrowing the exact amount needed from State Street Bank, where the current interest rate is 6%. Regis 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. Print Done

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter21: Supply Chains And Working Capital Management

Section: Chapter Questions

Problem 14P: Dorothy Koehl recently leased space in the Southside Mall and opened a new business, Koehl’s Doll...