111) Chinn Company has gathered the following information:

March 31, cash balance, $64,000

Amortization expense for April, $13,400

Dividends paid in April, $23,000

Cash collections in April, $142,000

Equipment purchased for cash in April, $27,200

Cash paid for operating expenses in April, $59,600

Merchandise paid for in April, $84,600

Chinn requires a minimum cash balance of $10,000.

Required: Prepare a cash budget for April, and comment on whether or not minimum cash balance requirements are met.

112) Bit Electronics has supplied the following information for 20X4.

Cash balance, January 1$ 16,000

Total revenues212,500

Total expenses217,500

All revenues are collected when earned and all expenses are paid as incurred. The total expenses include $10,500 of amortization.


a.How much profit did Bit earn during 20X4?

b.What was the ending balance of cash?

c.Explain how cash increased even though Bit had a net loss.

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