Mayfield Company expects to have a cash balance of $46,000 on January 1, 2010. These are the relevant monthly budget data for the first two months of 2010.

1. Collections from customers: January $88,307, February $164,307.

2. Payments to suppliers: January $58,307, February $93,307.

3. Wages: January $30,000, February $40,000. Wages are paid in the month they are incurred.

4. Administrative expenses: January $21,000, February $28,000. These costs include depreciation of $1,000 per month. All other costs are paid as incurred.

5. Selling expenses: January $15,417, February $20,417. These costs are exclusive of depreciation. They are paid as incurred.

6. Sales of short-term investments in January are expected to realize $12,000 in cash. Mayfield has a line of credit at a local bank that enables it to borrow up to $25,000. The company wants to maintain a minimum monthly cash balance of $20,000.

Complete the cash budget for January and February below. (List multiple items under receipts, disbursements and financing from largest to smallest amounts, e.g. 10, 5, 2.)


Cash Budget

For the Two Months Ending February 28, 2010

January February

Beginning cash balance $


Add: Receipts

RepaymentsCollections from customersWagesBorrowingsSelling expensesPayments to suppliersSale of short-term investmentsAdministrative expenses

WagesBorrowingsRepaymentsPayments to suppliersSale of short-term investmentsCollections from customersAdministrative expensesSelling expenses

Total receipts

Total available cash

Less: Disbursements

WagesAdministrative expensesSale of short-term investmentsRepaymentsPayments to suppliersSelling expensesCollections from customersBorrowings

WagesRepaymentsAdministrative expensesBorrowingsSelling expensesCollections from customersSale of short-term investmentsPayments to suppliers

Sale of short-term investmentsRepaymentsPayments to suppliersAdministrative expensesCollections from customersSelling expensesWagesBorrowings

BorrowingsWagesAdministrative expensesPayments to suppliersCollections from customersSale of short-term investmentsRepaymentsSelling expenses

Total disbursements

Excess (deficiency) of available cash over disbursements


RepaymentsWagesSelling expensesPayments to suppliersCollections from customersBorrowingsSale of short-term investmentsAdministrative expenses

BorrowingsSale of short-term investmentsCollections from customersSelling expensesPayments to suppliersRepaymentsWagesAdministrative expenses

Ending cash balance $