Daly Company has gathered the following information: May 30 ending cash balance

Question

Daly Company has gathered the following information: May 30 ending cash balance $45,000 Dividends paid in June $12,000 Cash expenditures in June for operating expenses $36,800 Depreciation expense in June $4,500 Cash collections in June $89,000 Merchandise purchases paid in cash in June $56,200 Purchase equipment for cash in June $17,500 Daly Company desires to keep a minimum cash balance of $10,000. Required: Prepare a cash budget for June, and indicate whether Daly Company meets minimum cash requirements.

Explanation / Answer

Opening Balance: 45000 Cash Collections: 89000 -Cash Purchases: 56200 -Equipment: 17500 -Expenditures: 36800 -Dividends: 12000 Ending Balance : 11500 Yes company is able to meet minimum cash requirements. Thanks, Aman

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