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Scott Logan Equipment's board of directors was presented with the following information about operations for an upcoming three-month period. The board desires to declare a
Scott Logan Equipment's board of directors was presented with the following information about operations for an upcoming three-month period. The board desires to declare a dividend at the end of June, but still maintain cash on hand of $150,000. Scott began April with $175,000 of cash on hand. Prepare a cash budget, and determine how much cash wil be available for the dividend? Is there any apparent risk associated with the dividend plan? Apri May June Customer receipts Cash paid for direct materials Cash paid for direct labor Factory overhead SG&A"4 Taxes Equipment purchase** $ 1,260,000 350,000 1440,000 477,000 540,000 277,200 149,400 28,800 600,000 360,000 441,000 252,000 154,800 27,000 399,600 477,000 261,000 160,200 32,400 Includes depreciation of $80,000 Includes depreciation of $45,000 Equpment purchase to be pald for in July
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