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11 October, 17:26

The following information is available for Sheridan Company for the month of January: expected cash receipts $59,020; expected cash disbursements $66,600; and cash balance on January 1, $11,980. Management wishes to maintain a minimum cash balance of $8,490. Prepare a basic cash budget for the month of January.

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  1. 11 October, 17:27
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    The preparation of the cash budget is shown below:

    Beginning cash balance $11,980

    Add: Expected cash receipts $59,020

    Total Cash available $71,000

    Less: Expected cash disbursements ($66,600)

    Excess amount $4,400

    Amount need to be financed (Bal. figure) $4,090

    Ending cash balance $8,490
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