When preparing the cash budget, all of the following should be considered except:

When preparing the cash budget, all of the following should be considered except:

Cash receipts from customers.

Cash payments for merchandise.

Depreciation expense.

Cash payments for income taxes.

Cash payments for capital expenditures.

Western Company is preparing a cash budget for June. The company has $12,000 cash at the beginning of June and anticipates $30,000 in cash receipts and $34,500 in cash disbursements during June. Western Company has an agreement with its bank to maintain a minimum cash balance of $10,000. As of May 31, the company owes $15,000 to the bank. To maintain the $10,000 required balance, during June the company must:

Borrow $4,500.

Borrow $2,500.

Borrow $10,000.

Repay $7,500.

Repay $2,500.

Beginning cash balance	$12,000
Add cash receipts	30,000
Less cash disbursements	(34,500)
Cash balance before financing	$7,500
Desired cash balance	10,000
Amount to borrow	$2,500

Southland Company is preparing a cash budget for August. The company has $17,000 cash at the beginning of August and anticipates $120,800 in cash receipts and $134,500 in cash disbursements during August. Southland Company wants to maintain a minimum cash balance of $10,000. The preliminary cash balance at the end of August before any loan activity is:

$13,300.

$137,800.

($13,700).

$3,300.

$27,000.

Beginning cash balance	$17,000
Add cash receipts	120,800
Less cash disbursements	(134,500)
Cash balance before financing	$3,300