Reference no: EM132617706

Thomas Company has $10,000 in cash on hand on January 1 and has collected the following budget? data:

                                                            January                                        February

Sales                                                   $1,330,000                              $640,000

Cash receipts from customers                     851,480                                  871,500

Cash payments for merchandise inventory    562,000                                   532,552

Problem 1: Assume Thomas has cash payments for selling and administrative expenses including salaries of $60,000 plus commissions of 1?% of? sales, all paid in the month of sale. The company requires a minimum cash balance of $9,000. Prepare a cash budget for January and February. Will Thomas need to borrow cash by the end of February??