B-21.09 Problem

B-21.09 Problem - April May June Customer receipts 700,000...

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B-21.09 Blueline Printing's board of directors was presented with the following information about operations for an upcoming three-month period. The board desires to declare a dividend at the end of June, but still maintain cash on hand of $250,000. Blueline began April with $75,000 of cash on hand. Prepare a cash budget, and determine how much cash will be available for the dividend? Is there any apparent risk associated with the dividend plan?
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Unformatted text preview: April May June Customer receipts 700,000 $ 750,000 $ 800,000 $ Cash paid for direct materials 200,000 222,000 265,000 Cash paid for direct labor 245,000 265,000 300,000 Factory overhead* 140,000 145,000 154,000 SG&A** 86,000 89,000 83,000 Taxes 15,000 18,000 16,000 Equipment purchase*** 500,000 * Includes depreciation of $100,000 ** Includes depreciation of $25,000 *** Equipment purchase to be paid for in July...
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