ABC Company has a cash balance of $42,000 on August 1 and requires a minimum ending cash balance of $27,544. Cash receipts from sales budgeted for August are $284,544. Cash disbursements budgeted for August include inventory purchases, $34,000; other manufacturing expenses, $121,000; operating expenses, $45,000; bond retirements, $67,000; and dividend payments, $32,000. Required: Prepare a cash budget for ABC Company for August.

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter7: Budgeting
Section: Chapter Questions
Problem 3PA: Echo Amplifiers prepared the following sales budget for the first quarter of 2018: It also has this...
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ABC Company has a cash balance of $42,000 on August 1 and requires a minimum ending cash balance of $27,544. Cash receipts from sales budgeted for August are $284,544. Cash disbursements budgeted for August include inventory purchases, $34,000; other manufacturing expenses, $121,000; operating expenses, $45,000; bond retirements, $67,000; and dividend payments, $32,000.

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Prepare a cash budget for ABC Company for August.

 

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