Reference no: EM132961018

Question - Ahlia Company has the following information:

Cash Balance, May 31 $45,000

Dividends paid in June 12,000

Cash paid for operating expenses in June 36,800

Equipment depreciation expense in June 4,500

Patent amortization expense in June 2,000

Cash collections on sales in June 99,000

Merchandise purchases paid in June 56,200

Purchase equipment for cash in June 17,500

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. 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.

Required - Prepare a cash budget for June.