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You are preparing a cash budget for Safari Inc. for the first quarter of 2024. You have summarized the following information. First Quarter, 2024 Safari Inc. Cash Budget Worksheet December January February Estimated Sales Estimated Credit Sales Estimated Receipts: Cash sales $825,000 $740,000 770,000 690,000 50,000 Collections of Accounts Receivable 75% of last month's credit sales 577,500 25% of current month credit sales 172,500 Total Accounts Receivable collections 750,000 Estimated purchases $485,000 453,000 Estimated payments of accounts payable 485,000 453,000 Other estimated disbursements for January 2024, include Wages and Salaries $280,000 Rent 35,000 Other Expenses 18,000 Tax Payments 105,000 Safaris projected cash balance at the beginning of January is $105,000 and the company desires to maintain a balance of $100,000 at the end of each month. Will Safari need to have a short-term loan in January? If yes, how much will Safari need? No Yes, $18,000. Yes, $118,000.

You are preparing a cash budget for Safari Inc. for the first quarter of 2024. You have summarized the following information. First Quarter, 2024 Safari Inc. Cash Budget Worksheet December January February Estimated Sales Estimated Credit Sales Estimated Receipts: Cash sales $825,000 $740,000 770,000 690,000 50,000 Collections of Accounts Receivable 75% of last month's credit sales 577,500 25% of current month credit sales 172,500 Total Accounts Receivable collections 750,000 Estimated purchases $485,000 453,000 Estimated payments of accounts payable 485,000 453,000 Other estimated disbursements for January 2024, include Wages and Salaries $280,000 Rent 35,000 Other Expenses 18,000 Tax Payments 105,000 Safaris projected cash balance at the beginning of January is $105,000 and the company desires to maintain a balance of $100,000 at the end of each month. Will Safari need to have a short-term loan in January? If yes, how much will Safari need? No Yes, $18,000. Yes, $118,000.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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You are preparing a cash budget for Safari Inc. for the first quarter of 2024. You have summarized the following information. First Quarter, 2024 Safari Inc. Cash Budget Worksheet December January February Estimated Sales Estimated Credit Sales Estimated Receipts: Cash sales $825,000 $740,000 770,000 690,000 50,000 Collections of Accounts Receivable 75% of last month's credit sales 577,500 25% of current month credit sales 172,500 Total Accounts Receivable collections 750,000 Estimated purchases $485,000 453,000 Estimated payments of accounts payable 485,000 453,000 Other estimated disbursements for January 2024, include Wages and Salaries $280,000 Rent 35,000 Other Expenses 18,000 Tax Payments 105,000 Safaris projected cash balance at the beginning of January is $105,000 and the company desires to maintain a balance of $100,000 at the end of each month. Will Safari need to have a short-term loan in January? If yes, how much will Safari need? No Yes, $18,000. Yes, $118,000.
Transcribed Image Text:You are preparing a cash budget for Safari Inc. for the first quarter of 2024. You have summarized the following information. First Quarter, 2024 Safari Inc. Cash Budget Worksheet December January February Estimated Sales Estimated Credit Sales Estimated Receipts: Cash sales $825,000 $740,000 770,000 690,000 50,000 Collections of Accounts Receivable 75% of last month's credit sales 577,500 25% of current month credit sales 172,500 Total Accounts Receivable collections 750,000 Estimated purchases $485,000 453,000 Estimated payments of accounts payable 485,000 453,000 Other estimated disbursements for January 2024, include Wages and Salaries $280,000 Rent 35,000 Other Expenses 18,000 Tax Payments 105,000 Safaris projected cash balance at the beginning of January is $105,000 and the company desires to maintain a balance of $100,000 at the end of each month. Will Safari need to have a short-term loan in January? If yes, how much will Safari need? No Yes, $18,000. Yes, $118,000.
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