View Policies Current Attempt in Progress The controller of Trenshaw Company wants to improve the company's control system by preparing a month-by-month cash budget. 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 "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 $28,500. re a cash budget for the month ended July 31, 2020, and indicate how much money, if any, Trenshaw Company will need to Prepare a borrow to meet its minimum cash requirement. 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. Beginning Cash Balance Add Cash Collections Total Cash Avallable Less Cash Disbursements Borrowings Sale of Equipment Merchandise Purchases Beginning Cash Balance Selling and Administrative Expenses Equipment Purchase Payment of Dividends $44,000 13,600 37,500 5,000 83,700 55,800 21,000 Cash Collections Excess of avallable cash over disbursements Total Cash Disbursements Repayments Total Cash Available TRENSHAW COMPANY Cash Budget For the Month Ended July 31, 2020 Ending Cash Balance Operating Expenses Receipts Cash Disbursements 44000 83700 JON 127700
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Step by step
Solved in 3 steps