Reference no: EM133091839
Question - Michael Scott tells you that:Beginning cash balance April 1st is $74,000.
Green Company has an advertising contract of $200,000 per month.
Green Company pays $18,000 each month for rent, $7,000 for utilities and $106,000 for salaries.
Green Company pays sales commissions to its sales staff of 4% of sales, above their regular salaries.
Green Company will pay a yearly $15,000 dividend in the month of April.
Green will purchase $16,000 of equipment in May and $40,000 in June.
Green must maintain a minimum cash balance of $50,000 each month.
All borrowing is done at the beginning of the month, and any repayments are made at the end of the month.
Interest must be paid when borrowings are repaid.
Required - Dunder Mifflin Paper Company has hired you as a consultant to help prepare the cash budget for the quarter ending June 30, 2022.
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