Question
The controller of Cullumber Company wants to improve the company's control system by preparing a month-by-month cash budget. The following information is for the month
The controller of Cullumber Company wants to improve the company's control system by preparing a month-by-month cash budget. The following information is for the month ending July 31, 2020.
June 30, 2020, cash balance$40,600Dividends to be declared on July 15*12,300Cash expenditures to be paid in July for operating expenses38,000Amortization expense in July4,500Cash collections to be received in July86,400Merchandise purchases to be paid in cash in July55,000Equipment to be purchased for cash in July20,400
*Dividends are payable 30 days after declaration to shareholders of record on the declaration date.
Cullumber Company wants to keep a minimum cash balance of $29,800.
(a)
Prepare the cash budget for the month ended July 31, 2020, and indicate how much money, if any, Cullumber Company will need to borrow to meet its minimum cash requirement.
CULLUMBERCOMPANY
Cash Budget
For the Month Ended July 31, 2020
For the Quarter Ended July 31, 2020
July 31, 2020
Operating Expenses
Selling and Administrative Expenses
Total Cash Available
Ending Cash Balance
Merchandise Purchases
Equipment Purchase
Sale of Equipment
Payment of Dividends
Cash Collections
Cash Disbursements
Borrowings
Repayments
Receipts
Total Cash Disbursements
Excess of available cash over disbursements
Beginning Cash Balance
$
Add
Less
:
Payment of Dividends
Borrowings
Excess of available cash over disbursements
Repayments
Beginning Cash Balance
Merchandise Purchases
Receipts
Equipment Purchase
Sale of Equipment
Cash Collections
Total Cash Disbursements
Cash Disbursements
Ending Cash Balance
Operating Expenses
Selling and Administrative Expenses
Total Cash Available
Excess of available cash over disbursements
Cash Collections
Cash Disbursements
Selling and Administrative Expenses
Total Cash Available
Repayments
Ending Cash Balance
Equipment Purchase
Total Cash Disbursements
Borrowings
Sale of Equipment
Merchandise Purchases
Beginning Cash Balance
Operating Expenses
Payment of Dividends
Receipts
$
Less
Add
:
Total Cash Available
Repayments
Beginning Cash Balance
Cash Disbursements
Receipts
Ending Cash Balance
Payment of Dividends
Total Cash Disbursements
Sale of Equipment
Cash Collections
Equipment Purchase
Merchandise Purchases
Operating Expenses
Selling and Administrative Expenses
Excess of available cash over disbursements
Borrowings
Total Cash Available
Ending Cash Balance
Selling and Administrative Expenses
Borrowings
Total Cash Disbursements
Merchandise Purchases
Operating Expenses
Receipts
Repayments
Cash Disbursements
Sale of Equipment
Cash Collections
Payment of Dividends
Excess of available cash over disbursements
Beginning Cash Balance
Equipment Purchase
$
Repayments
Total Cash Available
Beginning Cash Balance
Total Cash Disbursements
Excess of available cash over disbursements
Borrowings
Cash Disbursements
Cash Collections
Sale of Equipment
Operating Expenses
Merchandise Purchases
Ending Cash Balance
Equipment Purchase
Selling and Administrative Expenses
Payment of Dividends
Receipts
Merchandise Purchases
Borrowings
Sale of Equipment
Cash Disbursements
Operating Expenses
Payment of Dividends
Excess of available cash over disbursements
Receipts
Total Cash Available
Cash Collections
Ending Cash Balance
Selling and Administrative Expenses
Total Cash Disbursements
Repayments
Beginning Cash Balance
Equipment Purchase
Receipts
Equipment Purchase
Ending Cash Balance
Merchandise Purchases
Beginning Cash Balance
Selling and Administrative Expenses
Operating Expenses
Repayments
Borrowings
Sale of Equipment
Payment of Dividends
Total Cash Available
Total Cash Disbursements
Excess of available cash over disbursements
Cash Collections
Cash Disbursements
Selling and Administrative Expenses
Total Cash Available
Merchandise Purchases
Sale of Equipment
Ending Cash Balance
Cash Collections
Operating Expenses
Payment of Dividends
Equipment Purchase
Repayments
Receipts
Total Cash Disbursements
Excess of available cash over disbursements
Beginning Cash Balance
Borrowings
Cash Disbursements
Less
Add
:
Sale of Equipment
Beginning Cash Balance
Borrowings
Ending Cash Balance
Merchandise Purchases
Selling and Administrative Expenses
Total Cash Available
Receipts
Cash Disbursements
Payment of Dividends
Cash Collections
Equipment Purchase
Repayments
Operating Expenses
Total Cash Disbursements
Excess of available cash over disbursements
Payment of Dividends
Receipts
Total Cash Disbursements
Cash Collections
Borrowings
Operating Expenses
Excess of available cash over disbursements
Merchandise Purchases
Total Cash Available
Beginning Cash Balance
Sale of Equipment
Repayments
Selling and Administrative Expenses
Cash Disbursements
Equipment Purchase
Ending Cash Balance
$
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Auditing Cases An Active Learning Approach
Authors: Mark S. Beasley, Frank A. Buckless, Steven M. Glover, Douglas F. Prawitt
2nd Edition
0130674842, 978-0130674845
