Problem:
How do I prepare a cash budget? Also, I'd like to demonstrate if the company meets their minimum cash requirement of $10,000.
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J. Car & Sons Company has gathered the following information:
April 30 ending cash balance $25,000
Dividends paid in May $12,000
Cash expenditures in May for operating expenses $36,800
Depreciation expense in May $4,500
Cash collections in May $99,000
Merchandise purchases paid in cash in May $66,200
Purchase equipment for cash in May $17,500
J. Car & Sons Company desires to keep minimum cash balance of $10,000.