ABC Company has a cash balance of $41,000 on August 1 and requires a minimum ending...

Transcribed Image Text:

ABC Company has a cash balance of $41,000 on August 1 and requires a minimum ending cash balance of $33,160. Cash receipts from sales budgeted for August are $266,160. Cash disbursements budgeted for August include inventory purchases, $33,000; other manufacturing expenses, $100,000; operating expenses, $44,000; bond retirements, $66,000; and dividend payments, $31,000. Required: Prepare a cash budget for ABC Company for August. Beginning cash balance Cash Receipts: Cash collections from sales Total cash available Cash Disbursements: For payment of inventory purchases For payment of other manufacturing expenses For payment of operating expenses For payment of dividends For payment to retire bond Total cash disbursements Cash collections from sales Ending cash balance August $ 41,000 266,160 $ 307,160 33,000 100,000 44,000 31,000 66,000 $ 274,000 0 $ 0 ABC Company has a cash balance of $41,000 on August 1 and requires a minimum ending cash balance of $33,160. Cash receipts from sales budgeted for August are $266,160. Cash disbursements budgeted for August include inventory purchases, $33,000; other manufacturing expenses, $100,000; operating expenses, $44,000; bond retirements, $66,000; and dividend payments, $31,000. Required: Prepare a cash budget for ABC Company for August. Beginning cash balance Cash Receipts: Cash collections from sales Total cash available Cash Disbursements: For payment of inventory purchases For payment of other manufacturing expenses For payment of operating expenses For payment of dividends For payment to retire bond Total cash disbursements Cash collections from sales Ending cash balance August $ 41,000 266,160 $ 307,160 33,000 100,000 44,000 31,000 66,000 $ 274,000 0 $ 0

Answer rating: 100% (QA)

Cash budget for ABC Company for August Beginning cash b... View the full answer