You recently began a job as an accounting intern at Big Sky Adventures. Your first task was to help prepare the cash budget for February and March. Unfortunately, the computer with the budget file 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 enough information to reconstruct the budget. i (Click the icon to view information on borrowing cash.) (For amounts with a zero balance, make sure to enter "0" in the appropriate cell. Enter cash deficiencies with a minus sign or parentheses. Enter the net total effects of financing with a minus sign or parentheses when the amount is a net outflow. Round the interest expense to the nearest whole dollar.) Big Sky Adventures Ltd. Cash Budget February and March More info February March 16,200 Beginning cash balance Cash collections 0 Big Sky Adventures eliminates any cash deficiency by borrowing the exact amount needed from Caisse Populaire, where the current interest rate is 7%. Big Sky 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. Cash from sale of plant assets 106,400 Cash available Cash payments: Purchases of inventory 47,800 Print Done Operating expenses 98,500 Total payments (1) Ending cash balance before financing 21,000 Minimum cash balance desired Cash excess (deficiency) Financing of cash deficiency $ $ 80,200 2,600 41,900 23,600 21,000
You recently began a job as an accounting intern at Big Sky Adventures. Your first task was to help prepare the cash budget for February and March. Unfortunately, the computer with the budget file 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 enough information to reconstruct the budget. i (Click the icon to view information on borrowing cash.) (For amounts with a zero balance, make sure to enter "0" in the appropriate cell. Enter cash deficiencies with a minus sign or parentheses. Enter the net total effects of financing with a minus sign or parentheses when the amount is a net outflow. Round the interest expense to the nearest whole dollar.) Big Sky Adventures Ltd. Cash Budget February and March More info February March 16,200 Beginning cash balance Cash collections 0 Big Sky Adventures eliminates any cash deficiency by borrowing the exact amount needed from Caisse Populaire, where the current interest rate is 7%. Big Sky 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. Cash from sale of plant assets 106,400 Cash available Cash payments: Purchases of inventory 47,800 Print Done Operating expenses 98,500 Total payments (1) Ending cash balance before financing 21,000 Minimum cash balance desired Cash excess (deficiency) Financing of cash deficiency $ $ 80,200 2,600 41,900 23,600 21,000
Chapter8: Budgets And Bank Reconciliations
Section: Chapter Questions
Problem 6Q
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Transcribed Image Text:You recently began a job as an accounting intern at Big Sky Adventures. Your first task was to help prepare the cash budget for February and March. Unfortunately, the computer with the budget file 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 enough information to reconstruct the budget.
i (Click the icon to view information on borrowing cash.)
Co
(For amounts with a zero balance, make sure to enter "0" in the appropriate cell. Enter cash deficiencies with a minus sign or parentheses. Enter the net total effects of financing with a minus sign or parentheses when the amount is a net
outflow. Round the interest expense to the nearest whole dollar.)
Big Sky Adventures Ltd.
Cash Budget
February and March
-
X
More info
February
March
16,200
Beginning cash balance
Cash collections
0
Big Sky Adventures eliminates any cash deficiency by borrowing the exact amount needed from Caisse
Populaire, where the current interest rate is 7%. Big Sky 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.
Cash from sale of plant assets
106,400
Cash available
Cash payments:
Purchases of inventory
47,800
Print
Done
Operating expenses
98,500
Total payments
(1) Ending cash balance before financing
21,000
Minimum cash balance desired
Cash excess (deficiency)
Financing of cash deficiency:
$
$
80,200
2,600
41,900
23,600
21,000
Transcribed Image Text:You recently began a job as an accounting intern at Big Sky Adventures. Your first task was to help prepare the cash budget for February and March. Unfortunately, the computer with the budget file 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 enough information to reconstruct the budget.
i (Click the icon to view information on borrowing cash.)
Beginning cash balance
$
16,200
Cash collections
80,200
2,600
Cash from sale of plant assets
106,400
Cash available
Cash payments:
More info
Purchases of inventory
41,900
47,800
Operating expenses
98,500
Total payments
Big Sky Adventures eliminates any cash deficiency by borrowing the exact amount needed from Caisse
Populaire, where the current interest rate is 7%. Big Sky 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.
(1) Ending cash balance before financing
23,600
21,000
21,000
Minimum cash balance desired
Cash excess (deficiency)
Financing of cash deficiency:
Print
Done
Borrowing (at end of month)
Principal repayments (at end of month)
Interest expense
(2) Total effects of financing
Ending cash balance (1) + (2)
$
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