Cash Budget for October Beginning cash balance Add: Cash receipts Cash available Less: Payments For inventory purchases For S&A expenses Total budgeted payments Cash surplus (shortage) Will Havel need to borrow money during October? $ $ Yes 16,000 100,000 116,000 106,800 51,545 158,345 42,345
Cash Budget for October Beginning cash balance Add: Cash receipts Cash available Less: Payments For inventory purchases For S&A expenses Total budgeted payments Cash surplus (shortage) Will Havel need to borrow money during October? $ $ Yes 16,000 100,000 116,000 106,800 51,545 158,345 42,345
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Qw.36
Transcribed Image Text:Cash Budget for October
Beginning cash balance.
Add: Cash receipts
Cash available
Less: Payments
For inventory purchases
For S&A expenses
Total budgeted payments
Cash surplus (shortage)
Will Havel need to borrow money during October?
$
$
Yes
16,000
100,000
116,000
106,800
51,545
158,345
42,345 X
![!
Required information
[The following information applies to the questions displayed below.]
The following trial balance was drawn from the records of Havel Company as of October 1, year 2.
Cash
Accounts receivable
Inventory
Store equipment
Accumulated depreciation
Accounts payable
Line of credit loan
Common stock
Retained earnings
Totals.
$ 16,000
60,000
40,000
200,000
$316,000
$ 76,800
72,000
100,000
50,000
17,200
$316,000
c. Indicate whether Havel will need to borrow money during October by preparing October's Cash Budget. (Negative amounts should
be indicated by a minus sign.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe2ee2641-7c60-4f65-a663-59c8b8b8fc04%2F61a8c0db-3433-487e-86f0-7e9ebffbb286%2Fm1qnv2j_processed.jpeg&w=3840&q=75)
Transcribed Image Text:!
Required information
[The following information applies to the questions displayed below.]
The following trial balance was drawn from the records of Havel Company as of October 1, year 2.
Cash
Accounts receivable
Inventory
Store equipment
Accumulated depreciation
Accounts payable
Line of credit loan
Common stock
Retained earnings
Totals.
$ 16,000
60,000
40,000
200,000
$316,000
$ 76,800
72,000
100,000
50,000
17,200
$316,000
c. Indicate whether Havel will need to borrow money during October by preparing October's Cash Budget. (Negative amounts should
be indicated by a minus sign.)
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