Johnson Company Has Gathered the Following Information

question 63

Essay

Johnson Company has gathered the following information:
April 30, cash balance, $90,000
Dividends paid in May, $24,000
Cash expenditures in May for operating expenses, $73,600
Amortization expense in May, $9,000
Cash collections in May, $178,000
Merchandise purchases paid in cash in May, $112,400
Purchased equipment for cash in May, $35,000
Johnson desires to keep a minimum cash balance of $20,000.
Required: Prepare a cash budget for May, and indicate whether or not Johnson meets minimum cash requirements.

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Definitions:

Psychologically Healthy

Pertaining to a state of mental well-being in which an individual realizes their own abilities, can handle normal stresses of life, can work productively, and is able to contribute to their community.

Ethnocentric

The belief in the inherent superiority of one's own ethnic group or culture, often at the expense of understanding or respecting other cultures.

Bioscience Approach

A method of studying biological processes and organisms through rigorous scientific inquiry and experimentation.

Biomedical Mindset

An approach to health and illness focusing on biological factors, often at the expense of psychological or social dimensions.