You recently began a job as an accounting intern at Whitewater 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. Whitewater Adventures eliminates any cash deficiency by borrowing the exact amount needed from State Street Bank, where the current interest rate is 7%. Whitewater 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. Complete the following cash budget: Whitewater Adventures Cash Budget February and March February March Beginning cash balance $16,800 $ ? Plus: Cash collections ? 80,200 Plus: Cash from sale of plant assets 0 2,400 Total cash available $106,800 $ ? Less: Cash payments (purchase inventory) $ ? $41,200 Less: Cash payments (operating expenses) 47,600 ? Total cash payments $98,500 $ ? (1) Ending cash balance before financing $ ? $23,300 Minimum cash balance desired 20,000 20,000 Cash excess (deficiency) $ ? $ ? Financing: Plus: New borrowings $ ? $ ? Less: Debt repayments ? ? Less: Interest payments ? ? (2) Total effects of financing $ ? $ ? Ending cash balance (1) + (2) $ ? $ ?

Database System Concepts

7th Edition

ISBN:9780078022159

Author:Abraham Silberschatz Professor, Henry F. Korth, S. Sudarshan

Publisher:Abraham Silberschatz Professor, Henry F. Korth, S. Sudarshan

Chapter1: Introduction

Section: Chapter Questions

Problem 1PE

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You recently began a job as an accounting intern at Whitewater 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.

Whitewater Adventures eliminates any cash deficiency by borrowing the exact amount needed from State Street Bank, where the current interest rate is 7%. Whitewater 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.

Complete the following cash budget:

Whitewater Adventures
Cash Budget
February and March
	February	March
Beginning cash balance	$16,800	$ ?
Plus: Cash collections	?	80,200
Plus: Cash from sale of plant assets	0	2,400
Total cash available	$106,800	$ ?
Less: Cash payments (purchase inventory)	$ ?	$41,200
Less: Cash payments (operating expenses)	47,600	?
Total cash payments	$98,500	$ ?
(1) Ending cash balance before financing	$ ?	$23,300
Minimum cash balance desired	20,000	20,000
Cash excess (deficiency)	$ ?	$ ?
Financing:
Plus: New borrowings	$ ?	$ ?
Less: Debt repayments	?	?
Less: Interest payments	?	?
(2) Total effects of financing	$ ?	$ ?
Ending cash balance (1) + (2)	$ ?	$ ?

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