Johnson Company has gathered the following information:
April 30, cash balance, $90,000
Dividends paid in May, $24,000
Cash expenditures in May for operating expenses, $73,600
Amortization expense in May, $9,000
Cash collections in May, $178,000
Merchandise purchases paid in cash in May, $112,400
Purchased equipment for cash in May, $35,000
Johnson desires to keep a minimum cash balance of $20,000.
Required: Prepare a cash budget for May, and indicate whether or not Johnson meets minimum cash requirements.

Question

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The Answer of Johnson Company has gathered the following information:
April 30, cash balance, $90,000
Dividends paid in May, $24,000
Cash expenditures in May for operating expenses, $73,600
Amortization expense in May, $9,000
Cash collections in May, $178,000
Merchandise purchases paid in cash in May, $112,400
Purchased equipment for cash in May, $35,000
Johnson desires to keep a minimum cash balance of $20,000.
Required: Prepare a cash budget for May, and indicate whether or not Johnson meets minimum cash requirements.

Johnson Company Has Gathered the Following Information