Chapter 14, Problem 14.5ME

Mini-Exercise 14.5

LO 8

Cash budget In addition to the information presented in Mini-Exercise 14.4, ABC Company has a cash balance of $25,000 on August 1 and requires a minimum ending cash balance of $20,000. Cash disbursements budgeted for August include inventory purchases, $40,000; other manufacturing expenses, $98,000; operating expenses, $76,200; bond retirements, $50,000; and dividend payments, $15,000.

Required:

Prepare a cash budget for ABC Company for August.