Question
Below is the abbreviated cash budget for DEF Pty Ltd. Beginning Cash Balance Estimated Cash Receipts 34,000 Cash Available 39,000 Estimated Cash Payments Purchases Operating
Below is the abbreviated cash budget for DEF Pty Ltd.
| Beginning Cash Balance | ||
| Estimated Cash Receipts | 34,000 | |
| Cash Available | 39,000 | |
| Estimated Cash Payments | ||
| Purchases | ||
| Operating Expenses | 13,000 | |
| Payment of Dividend | 10,000 | |
| Total Estimated Cash Payments | ||
| Ending Cash Balance | -4,000 |
(a) Calculate the amount of Beginning Cash Balance, Purchases, and Total Estimated Cash Payments.
(b) What action if any should DEF Pty Ltd take as a result of preparing this budget? Briefly justify your answer.
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Horngrens Cost Accounting A Managerial Emphasis
Authors: Srikant M. Datar, Madhav V. Rajan
16th edition
134475585, 978-0134475998, 134475992, 978-0134475585
