AMC Enterprises is preparing its cash budget for October. The budgeted beginning cash balance is $22,000. Budgeted cash receipts total $195,000, and budgeted cash disbursements total $188,000. The desired ending cash balance for each month is $35,000. The company can borrow up to $150,000 at any time from a local bank but does not want to incur unnecessary interest charges by borrowing more than it needs to. What should the company do? a) borrow $5,000 b) borrow $6,000 c) borrow $150,000 d) borrow $3,000 e) borrow $10,000
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- In an attempt to better understand RR’s cash position, Johnson developed a cash budget for the first 2 months of the year. She has the figures for the other months, but they are not shown. After looking at the cash budget, answer the following questions: What does the cash budget show regarding the target cash level? Should depreciation expense be explicitly included in the cash budget? Why or why not? What are some other potential cash inflows besides collections? How can interest earned or paid on short-term securities or loans be incorporated in the cash budget? In her preliminary cash budget, Johnson has assumed that all sales are collected and thus that RR has no bad debts. Is this realistic? If not, how would bad debts be dealt with in a cash budgeting sense? (Hint: Bad debts will affect collections but not purchases.)Foyert Corporation requires a minimum $6,300 cash balance. Loans taken to meet this requirement cost 2% interest per month (paid at the end of each month). Any preliminary cash balance above $6,300 is used to repay loans at month-end. The cash balance on October 1 is $6,300, and the company has an outstanding loan of $2,300. Budgeted cash receipts (other than for loans received) and budgeted cash payments (other than for loan or interest payments) follow. Cash receipts Cash payments October $ 22,300 24,450 November $ 16,300 15,300 December $ 20,300 15,700 Prepare a cash budget for October, November, and December. (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign. Round your final answers to the nearest whole dollar.) FOYERT CORPORATION es Beginning cash balance Add: Cash receipts Total cash available Add: Cash payments for Interest on loan Total cash payments Preliminary cash balance Loan activity Additional loan (loan repayment) Ending cash…Foyert Corporation requires a minimum $7,400 cash balance. Loans taken to meet this requirement cost 1% interest per month (paid at the end of each month). Any preliminary cash balance above $7,400 is used to repay loans at month-end. The cash balance on October 1 is $7,400, and the company has an outstanding loan of $3,400. Budgeted cash receipts (other than for loans received) and budgeted cash payments (other than for loan or interest payments) follow. October November December Cash receipts $ 23,400 $ 17,400 $ 21,400 Cash payments 26,100 16,400 14,600 Prepare a cash budget for October, November, and December. (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign. Round your final answers to the nearest whole dollar.)
- Western Company is preparing a cash budget for June. The company has $10,300 in cash at the beginning of June and anticipates $31,700 in cash receipts and $37,900 in cash payments 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 has no loans outstanding. To maintain the $10,000 required balance, during June the company must: Multiple Choice Repay $4,100. Borrow $10,000. Borrow $5,900. Borrow $6,200. Repay $5,900.Foyert Corporation requires a minimum $7,000 cash balance. Loans taken to meet this requirement cost 1% interest per month (paid at the end of each month). Any preliminary cash balance above $7,000 is used to repay loans at month-end. The cash balance on October 1 is $7,000, and the company has an outstanding loan of $3,000. Budgeted cash receipts (other than for loans received) and budgeted cash payments (other than for loan or interest payments) follow. (please see picture for other info) October November December Cash receipts $ 23,000 $ 17,000 $ 21,000 Cash payments 25,500 16,000 15,000 Prepare a cash budget for October, November, and December.How would this be solved ?
- Karim Corporation requires a minimum $8,200 cash balance. Loans taken to meet this requirement cost 1% interest per month (paid at the end of each month). Any preliminary cash balance above $8,200 is used to repay loans at month-end. The cash balance on July 1 is $8,600, and the company has no outstanding loans. Budgeted cash receipts (other than for loans received) and budgeted cash payments (other than for loan or interest payments) follow. July August September Cash receipts $ 24,200 $ 32,200 $ 40,200 Cash payments 28,300 30,200 32,200 Prepare a cash budget for July, August, and September. (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign. Round your final answers to the nearest whole dollar.)Karim Corporation requires a minimum $8,100 cash balance. Loans taken to meet this requirement cost 2% interest per month (paid at the end of each month). Any preliminary cash balance above $8,100 is used to repay loans at month-end. The cash balance on July 1 is $8,500, and the company has no outstanding loans. Budgeted cash receipts (other than for loans received) and budgeted cash payments (other than for loan or interest payments) follow. Cash receipts Cash payments Beginning cash balance Prepare a cash budget for July, August, and September. (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign. Round your final answers to the nearest whole dollar.) Total cash available July August $ 24,100 $ 32,100 28,150 30,100 Total cash payments Preliminary cash balance Loan activity Ending cash balance September $ 40,100 32,100 KARIM CORPORATION Cash Budget $ July Loan balance Loan balance - Beginning of month Additional loan (loan repayment) Loan balance…Karim Corporation requires a minimum $8,800 cash balance. Loans taken to meet this requirement cost 1% interest per month (paid at the end of each month). Any preliminary cash balance above $8,800 is used to repay loans at month-end. The cash balance on July 1 is $9,200, and the company has no outstanding loans. Budgeted cash receipts (other than for loans received) and budgeted cash payments (other than for loan or interest payments) follow. Cash receipts Cash payments Beginning cash balance Add: Cash receipts Total cash available Less: Cash payments for Interest on loan Interest revenue Prepare a cash budget for July, August, and September. Note: Negative balances and Loan repayment amounts (If any) should be Indicated with minus sign. Round your final answers to the nearest whole dollar. Total cash payments Preliminary cash balance Loan activity July $ 24,800 29,208 Ending cash balance August $ 32,800 30,800 Loan balance Beginning of month Additional loan (loan repayment) Loan…
- Karim Corporation requires a minimum $9,800 cash balance. Loans taken to meet this requirement cost 1% interest per month (paid at the end of each month). Any preliminary cash balance above $9,800 is used to repay loans at month-end. The cash balance on July 1 is $10,200, and the company has no outstanding loans. Budgeted cash receipts (other than for loans received) and budgeted cash payments (other than for loan or interest payments) follow. Cash receipts Cash payments July $ 25,800 30,700 August $ 33,800 31,800 September $ 41,800 33,800 Prepare a cash budget for July, August, and September. Note: Negative balances and Loan repayment amounts (if any) should be indicated with minus sign. Round your final answers to the nearest whole dollar. Beginning cash balance Total cash available Total cash payments Preliminary cash balance Loan activity KARIM CORPORATION Cash Budget July August September $ 10,200 ProvKarim Corporation requires a minimum $8,300 cash balance. Loans taken to meet this requirement cost 2% interest per month (paid at the end of each month). Any preliminary cash balance above $8,300 is used to repay loans at month-end. The cash balance on July 1 is $8,700, and the company has no outstanding loans. Budgeted cash receipts (other than for loans received) and budgeted cash payments (other than for loan or interest payments) follow. Cash receipts Cash payments Beginning cash balance Add: Cash receipts Total cash available Less: Cash payments for Interest on loan July $ 24,300 28,450 Prepare a cash budget for July, August, and September. (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign. Round your final answers to the nearest whole dollar.) Total cash payments Preliminary cash balance Loan activity Additional loan (loan repayment) Ending cash balance August $ 32,300 30,300 Loan balance - Beginning of month Additional loan (loan…Cougar Hotel is preparing a cash budget for October. The hotel has $12,000 cash at the ending of September and anticipates $30,000 in cash receipts and $34,500 in cash disbursements. Cougar Hotel has an agreement with its bank to maintain a cash balance of at least $10,000. As of September 31st, it owes $15,000 to the bank. To maintain the $10,000 required balance, during October the company must: borrow $4,500. borrow $2,500. borrow $10,000. borrow $7,500.
