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Trenshaw Company

Price: $1.99


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, 2014.


June 30, 2014, cash balance   45,000
Dividends to be declared on July 15  12,000
Cash expenditures to be paid in July for operating expenses   40,800
Amortization expense in July   4,500
Cash collections to be received in July   90,000
Merchandise purchases to be paid in cash in July   56,200
Equipment to be purchased for cash in July   20,000

Trenshaw Company wants to keep a minimum cash balance of $25,000.

Instructions
Prepare a cash budget for the month ended July 31, 2014, and indicate how much money,
if any, Trenshaw Company will need to borrow to meet its minimum cash requirement.

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