Question
Below is the abbreviated cash budget for ABC Pty Ltd. Beginning Cash Balance 50,000 Estimated Cash Receipts Cash Available 390,000 Estimated Cash Payments Purchases 210,000
Below is the abbreviated cash budget for ABC Pty Ltd.
| Beginning Cash Balance | 50,000 | |
| Estimated Cash Receipts | ||
| Cash Available | 390,000 | |
| Estimated Cash Payments | ||
| Purchases | 210,000 | |
| Operating Expenses | ||
| Office Equipment Purchases | 50,000 | |
| Total Estimated Cash Payments | ||
| Ending Cash Balance | 40,000 |
(a) Calculate the amount of Estimated Cash Receipts, Operating Expenses, and Total Estimated Cash Payments. (3 marks)
(b) What action if any should ABC Pty Ltd take as a result of preparing this budget? Briefly justify your answer. (2 marks)
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Accounting Volume 1
Authors: Charles T. Horngren, Walter T. Harrison, Jo Ann L. Johnston, Carol A. Meissner, Peter R. Norwood
9th Canadian edition
978-013309863, 9780133128338, 013309863X, 133128334, 978-0132690096
