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
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.