*Dividends are payable to shareholders of record on declaration date, 30 days after declaration.Required:1. Prepare a cash budget for the month ending July 31, 2021, indicating how much, if anything, Optimum will need to borow to meet itsminimum cash requirement. (Leave no cells blank enter "0" wherever required).ARROWROOT COMPANYCash Budget for July 31, 2021.Total cash available before current financingLess disbursementsTotal disbursementsExcess (deficiency) of cash available over disbursementsFinancingBorrowingsRepaynents10leterestTotal financing The controller of Optimum wishes to improve the company's control system by preparing a monthly cash budget. The followinginformation relates to the month ending July 31, 2021:June 30, 2021, cash balanceDividends were declared on June 15Cash expenditures to be paid in July for operating expensesDepreciation expenseCash collections to be receivedHerchandise purchases to be paid in cashEquipment to be purchased for cashOptimun wishes to naintain a ninimum cash balance of$ 98,00028, 00075,6009,800182,000114,40042, 20038,000DIvidends are payable to shareholders of record on declaration date, 30 days after declaration.Required:1. Prepare a cash budget for the month ending July 31, 2021, indicating how much, if anything, Optimum will need to borrow to meet itsminimum cash requirement. (Leave no cells blank - enter "0" wherever required).ARROWROOT COMPANYCash Budget for July 31, 2021Total cash available before current financingLess disbursementsTotal disbursements

Solution:- Preparation of a cash budget for the month ending July 31, 2021, indicating how much, if…

Dvidends are payable to shareholders of record on declaration date, 30 Uay Required: 1. Prepare a cash budget for the month ending July 31, 2021, indicating how much, if anything, Optimum will need to borrow to meet its minimum cash requirement. (Leave no cells blank enter "0" wherever required). ARROWROOT COMPANY Cash Budget for July 31, 2021 Total cash available before curent financing Less disbursements

Dvidends are payable to shareholders of record on declaration date, 30 Uay Required: 1. Prepare a cash budget for the month ending July 31, 2021, indicating how much, if anything, Optimum will need to borrow to meet its minimum cash requirement. (Leave no cells blank enter "0" wherever required). ARROWROOT COMPANY Cash Budget for July 31, 2021 Total cash available before curent financing Less disbursements

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter8: Budgeting For Planning And Control

Section: Chapter Questions

Problem 33E: A companys controller is adjusting next years budget to reflect the impact of an expected 3 percent...

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The controller of Optimum wishes to improve the company's control system by preparing a monthly cash budget. The following information relates to the month ending July 31, 2021: June 30, 2021, cash balance Dividends were declared on June 15* $130,000 44, 000 83,600 13,000 198,000 122,400 47,000 70, 000 Cash expenditures to be paid in July for operating expenses Depreciation expense Cash collections to be received Merchandise purchases to be paid in cash Equipment to be purchased for cash Optimum wishes to maintain a minimum cash balance of *Dividends are payable to shareholders of record on declaration date, 30 days after declaration. Required: 1. Prepare a cash budget for the month ending July 31, 2021, indicating how much, if anything, Optimum will need to borrow to meet its minimum cash requirement. (Leave no cells blank - enter "O" wherever required).
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Required:(a) The business needs to have a sense of its future cash flows and therefore requires thepreparation of the following:▪ A schedule of budgeted cash collections for trade receivables (sales on account) for each ofthe months January to March. ▪ A schedule of expected cash disbursements for accounts payable (purchases on account)for each of the months January to March. ▪ A cash budget, with a total column, for the quarter ending March 31, 2022, showing theexpected cash receipts and payments for each month and the ending cash balance for eachof the three months, given that no financing activities took place.
a) The business needs to have a sense of its future cash flows and therefore requires the preparation of the following: ▪ A schedule of budgeted cash collections for trade receivables (sales on account) for each of the months January to March. ▪ A schedule of expected cash disbursements for accounts payable (purchases on account) for each of the months January to March. ▪ A cash budget, with a total column, for the quarter ending March 31, 2022, showing the expected cash receipts and payments for each month and the ending cash balance for each of the three months, given that no financing activities took place.PLEASE TAKE INTO CONSIDERATION THE DISCOUNTS!i.e the credit terms 4/30, n90 for accounts receivables& the credit terms 2/30, n60 for accounts payable
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