How much will cedarwood need to borrow during November? Cedarwood Corporation provided the followinginformation for the month of November:Beginning cash balance: $50,000. Cash receipts: $520,000Cash disbursements: $560,000Cedarwood's policy is to maintain a minimum end-of-the-month cash balance of $40,000.How much will Cedarwood need to borrow duringNovember?

Explanation: In the given case, we are required to calculate the amount that Cedarwood Corp. need to…

Answered: Cedarwood Corporation provided the…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 11EB: Gear Up Co. pays 65% of its purchases in the month of purchase, 30% in the month after the purchase,...

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Harrah Company provided the following information for the month of October: Beginning cash balance $ 35,000 Cash receipts 460,000 Cash disbursements 485,000 Harrah's policy is to keep a minimum end of the month cash balance of $30,000. How much will Harrah's need to borrow during October?
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How much will cedarwood need to borrow during November
Sparks Corporation has a cash balance of $17,700 on April 1. The company must maintain a minimum cash balance of $14,500. During April, expected cash receipts are $65,000. Cash disbursements during the month are expected to total $77,500. Ignoring interest payments, during April the company will need to borrow: Multiple Choice O $9,300 $5,200 $14,500 $12,500
Sparks Corporation has a cash balance of $14,100 on April 1. The company must maintain a minimum cash balance of $16,500. During April, expected cash receipts are $59,000. Cash disbursements during the month are expected to total $68,500. Ignoring interest payments, during April the company will need to borrow: O 11,900 O 56,600 4,600 9,500
f) The Cathy Specialist Corporation approached you to compile a cash disbursement schedule for the month of March, April and May. Use the following information. Sales: January-RMS20,000; February-RM540,000; March-RM550,000; April=RM600,000; May-RM660,000; June-RM670,000. Purchases: Purchases are calculated as 70% of the following month's sales, 50% of purchase are made in cash, 30% of purchases are settled one month after purchase, and the remaining 20% of purchase are settled two months after purchase. c) d) e) g) h) the firm's expected cash receipts for a) b) Rent: The firm pays rent of RM9,500 per month. Wages & salaries: the fixed wage and salary costs are RM7,500 per month plus a variable cost of 6.5% of the current month's sales. Taxes: the tax bill to be paid in May amount to RM57,500. Fixed asset outlay: new equipment will be acquired during March at a cost of RM85,000. Interest payment: an amount of RM32,000 for interest is due in March. Cash Dividend: Dividends of RM15,000…
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