Daily Company has the following information:

May 31 ending cash balance........................................................  $45,000

Dividends paid in June..................................................................  $12,000

Cash expenditures in June for operating expenses.................  $36,800

Depreciation expense in June.....................................................  $4,500

Cash collections in June...............................................................  $89,000

Merchandise purchases paid in cash in June............................  $56,200

Purchase equipment for cash in June......................................... $17,500

 

Daily Company desires to keep a minimum cash balance of $10,000.

Required:

Prepare a cash budget for June, and indicate whether Daily Company meets minimum cash requirements.

Answer rating: 100% (QA)

Cash Budget June May 30 ending cash balance 45000 Cash c... View the full answer