The controller of Big River Inc. wishes to improve the company's control system by preparing a monthly cash budget. The following information relates to the month ending May 31, 2024 April 30, 2024, cash balance Dividends were declared on April 15 Cash expenditures to be paid in May for operating expenses Depreciation expense Cash collections to be received Merchandise purchases to be paid in cash Equipment to be purchased for cash Big River wishes to maintain a minimum cash balance of $122,000 40,000 81,600 12,200 194,000 120,400 45,800 "Dividends are payable to shareholders of record on declaration date, 30 days after declaration. Required: 1. Prepare a cash budget for the month ended May 31, 2024, indicating how much, if anything. Big River will need to borrow to meet its minimum cash requirement. (Leave no cells blank-be certain to enter "0" wherever required.)

The controller of Big River Inc. wishes to improve the company's control system by preparing a monthly cash budget. The following information relates to the month ending May 31, 2024 April 30, 2024, cash balance Dividends were declared on April 15 Cash expenditures to be paid in May for operating expenses Depreciation expense Cash collections to be received Merchandise purchases to be paid in cash Equipment to be purchased for cash Big River wishes to maintain a minimum cash balance of $122,000 40,000 81,600 12,200 194,000 120,400 45,800 "Dividends are payable to shareholders of record on declaration date, 30 days after declaration. Required: 1. Prepare a cash budget for the month ended May 31, 2024, indicating how much, if anything. Big River will need to borrow to meet its minimum cash requirement. (Leave no cells blank-be certain to enter "0" wherever required.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Master Budget

A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.

Sales Budget and Selling

A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.

Question

The controller of Big River Inc. wishes to improve the company's control system by preparing a monthly cash budget. The following
information relates to the month ending May 31, 2024
April 30, 2024, cash balance
Dividends were declared on April 15
Cash expenditures to be paid in May for operating expenses
Depreciation expense
Cash collections to be received
Merchandise purchases to be paid in cash
Equipment to be purchased for cash
Big River wishes to maintain a minimum cash balance of
$122,000
40,000
81,600
12,200
194,000
120,400
45,800
62,000
"Dividends are payable to shareholders of record on declaration date, 30 days after declaration
Required:
1. Prepare a cash budget for the month ended May 31, 2024, indicating how much, if anything. Big River will need to borrow to meet its
minimum cash requirement. (Leave no cells blank - be certain to enter "0" wherever required.)

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