Question
Below is the abbreviated cash budget for BNE Pty Ltd. Beginning Cash Balance Estimated Cash Receipts 50,000 Cash Available 65,000 Estimated Cash Payments Purchases Operating
Below is the abbreviated cash budget for BNE Pty Ltd.
| Beginning Cash Balance |
|
|
| Estimated Cash Receipts |
| 50,000 |
| Cash Available |
| 65,000 |
| Estimated Cash Payments |
|
|
| Purchases |
|
|
| Operating Expenses | 15,000 |
|
| Payment of Dividend | 10,000 |
|
| Total Estimated Cash Payments |
|
|
| Ending Cash Balance |
| -5,000 |
(a) Calculate the amount of Beginning Cash Balance, Purchases, and Total Estimated Cash Payments.
(b) What action if any should BNE Pty Ltd take as a result of preparing this budget? Briefly justify your answer.
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
9781285586618
