The controller of Optimum wishes to improve the company's control system by preparing a monthly cash budget. The followinginformation relates to the month ending July 31, 2021:June 30, 2021, cash balanceDividends were declared on June 15*$130,00044, 00083,60013,000198,000122,40047,00070, 000Cash expenditures to be paid in July for operating expensesDepreciation expenseCash collections to be receivedMerchandise purchases to be paid in cashEquipment to be purchased for cashOptimum wishes to maintain a minimum cash balance of*Dividends are payable to shareholders of record on declaration date, 30 days after declaration.Required:1. Prepare a cash budget for the month ending July 31, 2021, indicating how much, if anything, Optimum will need to borrow to meet itsminimum cash requirement. (Leave no cells blank - enter "O" wherever required).

Formula: Ending cash balance = Optimum wishes to maintain a minimum cash balance - Total available…

The controller of Optimum wishes to improve the company's control system by preparing a monthly cash budget. The following information relates to the month ending July 31, 2021: June 30, 2021, cash balance Dividends were declared on June 15* Cash expenditures to be paid in July for operating expenses Depreciation expense Cash collections to be received $130,000 44, 000 83,600 13,000 Merchandise purchases to be paid in cash Equipment to be purchased for cash Optimum wishes to maintain a minimum cash balance of 198,000 122,400 47,000 70,000 *Dividends are payable to shareholders of record on declaration date, 30 days after declaration.

The controller of Optimum wishes to improve the company's control system by preparing a monthly cash budget. The following information relates to the month ending July 31, 2021: June 30, 2021, cash balance Dividends were declared on June 15* Cash expenditures to be paid in July for operating expenses Depreciation expense Cash collections to be received $130,000 44, 000 83,600 13,000 Merchandise purchases to be paid in cash Equipment to be purchased for cash Optimum wishes to maintain a minimum cash balance of 198,000 122,400 47,000 70,000 *Dividends are payable to shareholders of record on declaration date, 30 days after declaration.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 18E: Carmichael Corporation is in the process of preparing next years budget. The pro forma income...

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