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The following information for the month of May has been provided for Bowser Company: May 1, cash balance $ 56,000 Cash collections anticipated in May
The following information for the month of May has been provided for Bowser Company:
May 1, cash balance | $ | 56,000 | |
Cash collections anticipated in May | 68,000 | ||
Expected May cash expenditures for operating expenses | 22,600 | ||
Inventory purchases to be paid in May | 54,200 | ||
Cash dividends declared in May and to be paid in June | 18,000 | ||
May depreciation expense | 9,600 | ||
Interest income to be received from investments | 4,200 | ||
Production equipment purchase 50% of which will be paid in May and the balance will be paid in June | 66,000 | ||
(a.) Prepare a cash budget for May.
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