Question

25) Perry Company has gathered the following information:

April 30, cash balance $90,000

Dividends paid in May$24,000

Cash expenditures in May for operating expenses$73,600

Amortization expense in May$9,000

Cash collections in May$178,000

Merchandise purchases paid in cash in May$112,400

Purchased equipment for cash in May$35,000

Perry desires to keep a minimum cash balance of $20,000.

Required:

Prepare a cash budget for May, and indicate whether or not Perry meets minimum cash requirements.

26) Berry Company has gathered the following information:

April 30, cash balance $65,000

Dividends paid in May$12,000

Cash expenditures in May for operating expenses$76,600

Amortization expense in May$13,000

Cash collections in May$152,300

Merchandise purchases paid in cash in May$121,900

Purchased equipment for cash in May$56,000

Berry desires to keep a minimum cash balance of $15,000.

Required:

Prepare a cash budget for May, and indicate whether or not Berry meets minimum cash requirements.

27) Duffy Corporation has prepared the following sales budget:

MonthCash SalesCredit Sales

May$16,000$68,000

June20,00080,000

July18,00074,000

August24,00092,000

September22,00076,000

Collections are 40% in the month of sale, 45% in the month following the sale, and 10% two months following the sale. The remaining 5% is expected to be uncollectible.

Required:

Prepare a schedule of cash collections for July through September.

Answer 1

ans 25
Cash budget for May
	May
Beginning Cash balance	90000
AddL collection from customers	$178,000
Total cash available	268000
Less: Cash Disbursements
Mercandise purchases paid	112400
Purchase of equipment	35000
Payment for operating expenses	73600
Dividend paid	24000
Total cash Disbursements	$245,000
Excess /(deficiency) of cash receipts over cash disbursements	$23,000
Minimum Cash balance (working)	20000
Ending Cash balance	$23,000
Mininum cash balance requirement met
ans 26
Cash budget for May
	May
Beginning Cash balance	65000
AddL collection from customers	$152,300
Total cash available	217300
Less: Cash Disbursements
Mercandise purchases paid	121900
Purchase of equipment	56000
Payment for operating expenses	76600
Dividend paid	12000
Total cash Disbursements	$266,500
Excess /(deficiency) of cash receipts over cash disbursements	($49,200)
Minimum Cash balance (working)	20000
Financing
Borrowed	69200
Repaid
Total financing	69200
Ending Cash balance	$20,000
Mininum cash balance requirement not met
Dear student there are three different questions I have done first two
if any doubt please comment