Preparing a financial budget You recently began a job as an accounting intern at Reilly Golf Park. Your first task was to help prepare the cash budget for April and May. Unfortunately, the computer with the budget file crashed, and you did not have a backup or even a paper 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.

REILLY GOLF PARK Cash Budget April and May
Â	April	May
Beginning cash balance	$18,000	$?
Cash collections	?	82,000
Cash from sale of plant assets	0	2,100
Cash available	113,000	?
Cash payments:	Â	Â
Purchase of inventory	$?	$44,000
Operating expenses	46,000	?
Total cash payments	97,000	?
Ending cash balance before financing	?	22,100
Less: Minimum cash balance required	20,000	20,000
Cash excess (deficiency)	$?	$?
Financing of cash deficiency:	Â	Â
Borrowing (at end of month)	?	?
Principal repayments (at end of month)	?	?
Interest expense	?	?
Total effects of financing	?	?
Ending cash balance	$?	$?

Reilly Golf Park eliminates any cash deficiency by borrowing the exact amount needed from First Street Bank, where the current interest rate is 6%. Reilly Golf Park first pays interest on its outstanding debt at the end of each month. The company then repays all borrowed amounts at the end of the month with any excess cash above the minimum required but after paying monthly interest expenses.

Requirement

1. Complete the cash budget.

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