02 Aug Budget in Service Company (Cash Budget) Edge Soccer Program (Edge) began the year with a cash balance of $10,500. The budget forecasts that collections from company owed
Budget in Service Company (Cash Budget)
Edge Soccer Program (Edge) began the year with a cash balance of $10,500. The budget forecasts that collections from company owed to the company by customers will be $11,000 in January and $15,200 in February. The soccer program is also supposed to receive $8,500 on a note’s receivable from a soccer club that owes Edge for training current player in January.
Edge plans to purchase soccer equipment in January and February with cash. The budgeted amounts of the purchases are $15,600 in January and $14,800 in February. Operating costs for the business is $2900 per month.
Edge requires $10,000 to maintain in the back account at all times. If the amount in the account falls below $10,000 the credit union extends credit to Edge immediately in multiples of $1000. Edge pays back any amounts borrowed each quarter in payments of $2000 plus 4% interest. The first payment occurs three months after the advance is made to Edge.
Requirement
Prepare a cash budget for January and February.
Sheet1
| Edge Soccer Programs | ||||
| Cash Budget | ||||
| For the Two Months Ended February 28 | ||||
| January | February | Total | ||
| Beginning cash balance | ||||
| Cash receipts from customers | ||||
| Collection of note receivable | ||||
| Cash available | ||||
| Cash payments: | ||||
| Equipment purchases | ||||
| Selling and administrative expenses | ||||
| Total cash payments | ||||
| Ending cash balance before financing | ||||
| Minimum cash balance desired | ||||
| Projected cash excess (deficiency) | ||||
| Financing: | ||||
| Borrowing | ||||
| Repayment of principal | ||||
| Total effects of financing | 0 | 0 | 0 | |
| Ending cash balance | $0 | $0 | $0 | |
Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteEdu. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Fill in all the assignment paper details that are required in the order form with the standard information being the page count, deadline, academic level and type of paper. It is advisable to have this information at hand so that you can quickly fill in the necessary information needed in the form for the essay writer to be immediately assigned to your writing project. Make payment for the custom essay order to enable us to assign a suitable writer to your order. Payments are made through Paypal on a secured billing page. Finally, sit back and relax.
Do you need help with this question?
Get assignment help from WriteEdu.com Paper Writing Website and forget about your problems.
WriteEdu provides custom & cheap essay writing 100% original, plagiarism free essays, assignments & dissertations.
With an exceptional team of professional academic experts in a wide range of subjects, we can guarantee you an unrivaled quality of custom-written papers.
Chat with us today! We are always waiting to answer all your questions.