A Company is preparing a cash budget for June The company has $83,750 cash at the beginning ofJune and anticipates $102,930 in cash receipts and $116,870 in cash disbursements during June. Thiscompany has an agreement with its bank to maintain a cash balance of at least $81 250. As of May 31.the company owes $30,000 to the bank To maintain the $81.250 required balance, during June thecompany mustO Borrow $11 440O Repay $13,940O Borrow $30 000Repay $30,000O Repay $11,440

Given: Opening balance = $83,570 Cash receipts = $102,930 Cash disbursements = $116,870 Required…

Answered: A Company is preparing a cash budget…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Santos Co. is preparing a cash budget for February. The company has $12,000 cash at the beginning of February and anticipates $67,000 in cash receipts and $119,000 in cash disbursements during February. What amount, if any. must the company borrow during February to maintain a $5,000 cash balance? The company has no loans outstanding on February 1. (Negative cash balances, if any, should be Indicated with minus sign.) SANTOS CO. Cash Budget For Month Ended February 28 Beginning cash balance Total cash available Preliminary cash balance Ending cash balance
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NanaKay Company must maintain a minimum cash balance of GH¢25,000. At the beginning of June, the company’s cash balance was GH¢17,000. Budgeted cash receipts for June are GH¢150,000, and budgeted cash disbursements are GH¢201,000. Budgeted net income for July totals GH¢11,000. How much will NanaKay Company need to borrow by the end of June?
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