ABC Company has a cash balance of $25,000 on August 1 and requires a minimum ending cash

Question:

ABC Company has a cash balance of $25,000 on August 1 and requires a minimum ending cash balance of $20,000. Cash receipts from sales budgeted for August are $291,600. Cash disbursements budgeted for August include inventory purchases, $40,000; other manufacturing expenses, $98,000; operating expenses, $76,200; bond retirements, $50,000; and dividend payments, $15,000.

Required:

Prepare a cash budget for ABC Company for August.

Cash Budget
A cash budget is an estimation of the cash flows for a business over a specific period of time. These cash inflows and outflows include revenues collected, expenses paid, and loans receipts and payment. Its primary purpose is to provide the... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...

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