The controller of Trenshaw 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 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 $40,600 12,300 (a) 38,000 4,500 86,400 55,000 20,400 *Dividends are payable 30 days after declaration to shareholders of record on the declaration date. Trenshaw Company wants to keep a minimum cash balance of $29,800. Prepare a cash budget for the month ended July 31, 2020, and indicate how much money, if any, Trenshaw Company will need to borrow to meet its minimum cash requirement.
The controller of Trenshaw 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 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 $40,600 12,300 (a) 38,000 4,500 86,400 55,000 20,400 *Dividends are payable 30 days after declaration to shareholders of record on the declaration date. Trenshaw Company wants to keep a minimum cash balance of $29,800. Prepare a cash budget for the month ended July 31, 2020, and indicate how much money, if any, Trenshaw 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:TRENSHAW COMPANY
Cash Budget
$
Transcribed Image Text:The controller of Trenshaw 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
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
$40,600
(a)
12,300
38,000
4,500
86,400
55,000
20,400
*Dividends are payable 30 days after declaration to shareholders of record on the declaration date.
Trenshaw Company wants to keep a minimum cash balance of $29,800.
Prepare a cash budget for the month ended July 31, 2020, and indicate how much money, if any, Trenshaw Company will need to
borrow to meet its minimum cash requirement.
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