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 $40,300 14,600 37,800 5,000 83,600 56,700 20,200 "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 $26,500. (a) 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 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 $40,300 14,600 37,800 5,000 83,600 56,700 20,200 "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 $26,500. (a) 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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Transcribed Image Text: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
$40,300
14,600
37,800
5,000
83,600
56,700
20,200
*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 $26,500.
(a)
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.
Transcribed Image Text:O:
0:
A
O
O
O
O
O
TRENSHAW COMPANY
Cash Budget
O
O
O
0
O
$
$
(
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