25) Perry Company has gathered the following information:

April 30, cash balance $90,000

Dividends paid in May$24,000

Cash expenditures in May for operating expenses$73,600

Amortization expense in May$9,000

Cash collections in May$178,000

Merchandise purchases paid in cash in May$112,400

Purchased equipment for cash in May$35,000

Perry desires to keep a minimum cash balance of $20,000.

Required:

Prepare a cash budget for May, and indicate whether or not Perry meets minimum cash requirements.

26) Berry Company has gathered the following information:

April 30, cash balance $65,000

Dividends paid in May$12,000

Cash expenditures in May for operating expenses$76,600

Amortization expense in May$13,000

Cash collections in May$152,300

Merchandise purchases paid in cash in May$121,900

Purchased equipment for cash in May$56,000

Berry desires to keep a minimum cash balance of $15,000.

Required:

Prepare a cash budget for May, and indicate whether or not Berry meets minimum cash requirements.

27) Duffy Corporation has prepared the following sales budget:

MonthCash SalesCredit Sales

May$16,000$68,000

June20,00080,000

July18,00074,000

August24,00092,000

September22,00076,000

Collections are 40% in the month of sale, 45% in the month following the sale, and 10% two months following the sale. The remaining 5% is expected to be uncollectible.

Required:

Prepare a schedule of cash collections for July through September.