Razan Company has the following information during the month of June 2020: Cash Balance, May 31 Dividends paid in June Cash paid for operating expenses in June Equipment depreciation expense in June Patent amortization expense in June Cash collections on sales in Merchandise purchases paid in June Purchase equipment for cash in June Sales commission (50% paid in June) Razan Company wants to keep a minimum cash balance of $10,000. Assume that borrowing occurs at the beginning of the month and repayments occur at the end of the month. Monthly interest of 1% is paid in cash at the end of each month when debt is outstanding. Borrowing and repayments are carried out in multiples of $1,000. $45,000 12.000 36,800 4.500 2,000 112,500 86.200 June 17,500 30,500 Required: Prepare a cash budget for June.

Razan Company has the following information during the month of June 2020: Cash Balance, May 31 Dividends paid in June Cash paid for operating expenses in June Equipment depreciation expense in June Patent amortization expense in June Cash collections on sales in Merchandise purchases paid in June Purchase equipment for cash in June Sales commission (50% paid in June) Razan Company wants to keep a minimum cash balance of $10,000. Assume that borrowing occurs at the beginning of the month and repayments occur at the end of the month. Monthly interest of 1% is paid in cash at the end of each month when debt is outstanding. Borrowing and repayments are carried out in multiples of $1,000. $45,000 12.000 36,800 4.500 2,000 112,500 86.200 June 17,500 30,500 Required: Prepare a cash budget for June.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter11: The Statement Of Cash Flows

Section: Chapter Questions

Problem 32BE

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