The controller of Sunland 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 AV 31, 2022 June 30, 2022, cash balance Dividends to be declared on July 15 Cash expenditures to be paid in July for operating expenses Amortization expense in July Cash collections to be received in July Merchandise purchases to be paid in cash in July Equipment to be purchased for cash in July $52,200 13.200 47,040 5,220 104,400 64760 23.200 "Dividends are payable 30 days after declaration to shareholders of record on the declaration date Sunland Company wants to keep a minimum cash balance of $29,000 (a) Prepare a cash budget for the month ended July 31, 2022, and indicate how much money, if any, Sunland Company will need to borrow to meet its minimum cash requirement
The controller of Sunland 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 AV 31, 2022 June 30, 2022, cash balance Dividends to be declared on July 15 Cash expenditures to be paid in July for operating expenses Amortization expense in July Cash collections to be received in July Merchandise purchases to be paid in cash in July Equipment to be purchased for cash in July $52,200 13.200 47,040 5,220 104,400 64760 23.200 "Dividends are payable 30 days after declaration to shareholders of record on the declaration date Sunland Company wants to keep a minimum cash balance of $29,000 (a) Prepare a cash budget for the month ended July 31, 2022, and indicate how much money, if any, Sunland Company will need to borrow to meet its minimum cash requirement
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.
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Transcribed Image Text:The controller of Sunland 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 Aay 31, 2022
June 30, 2022, cash balance
Dividends to be declared on July 15
Cash expenditures to be paid in July for operating expenses
Amortization expense in July
Cash collections to be received in July
Merchandise purchases to be paid in cash in July
Equipment to be purchased for cash in July
(a)
$52,200
13.200
47,040
5,220
104,400
64,760
23,200
"Dividends are payable 30 days after declaration to shareholders of record on the declaration date
Sunland Company wants to keep a minimum cash balance of $29,000
Prepare a cash budget for the month ended July 31, 2022 and indicate how much money, if any, Sunland Company will need to borrow to meet its minimum cash requirement
Transcribed Image Text:Prepare a cash budget for the month ended July 31, 2022, and indicate how much money, if any, Sunland Company will need to borrow to meet its minimum cash re
SUNLAND COMPANY
Cash Budget
For the Month Ended July 31, 2022
Beginning Cash Balance
Add V
Total Cash Avallable
Less
Cash Collections
Cash Disbursements
Repayments
Total Cash Disbursements
Less
Total Cash Avallable
Borrowings
Cash Collections
4
DOD
$
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