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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Nonnas Re-Appliance Store collects 55% of its accounts receivable in the month of sale and 40% in the month after the sale. Given the following sales, how much cash will be collected in February?
My Aunts Closet Store collects 60% of its accounts receivable in the month of sale and 35% in the month after the sale. Given the following sales, how much cash will be collected in March?
The George Company has a policy of maintaining an end-of-month cash balance of at least $30,000.In months where a shortfall is expected, the company can draw in $1,000 increments on a line ofcredit it has with a local bank, at an interest rate of 12% per annum. All borrowings are assumed forbudgeting purposes to occur at the beginning of the month, while all loan repayments (in $1,000increments of principal) are assumed to occur at the end of the month. Interest is paid at the end ofeach month. For April, an end-of-month cash balance (prior to any financing and interest expense)of $18,000 is budgeted; for May, an excess of cash collected over cash payments (prior to any interest payments and loan repayments) of $22,000 is anticipated. What is the interest payment estimatedfor April (there is no bank loan outstanding at the end of March)? What is the total financing effect(cash interest plus loan transaction) for May?
and cash payments (excluding cash payments for loan principal and interest payments) for the first three months of next year. January February March Cash Receipts Cash payments $ 517,000 409,500 480,000 $ 459,400 351,900 524,000 Kayak requires a minimum cash balance of $40,000 at each month-end. Loans taken to meet this requirement charge 1%, interest per month, paid at each month-end. The interest is computed based on the beginning balance of the loan for the month. Any preliminary cash balance above $40,000 is used to repay loans at month-end. The company has a cash balance of $40,000 and a loan balance of $80,000 at January 1. Prepare monthly cash budgets for January, February, and March. (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign.) Answer is complete but not entirely correct. KAYAK COMPANY Beginning cash balance Add: Cash receipts Cash Budget January February March SA 40,000 $ 40,000 $ 74,168 517,000 409,500 480,000 557,000 449,500…
The Morning Jolt Coffee Company has projected the following quarterly sales amounts for the coming year: Sales Q1 $ 750 Beginning receivables Sales Cash collections Ending receivables Q2 $ 810 a. Accounts receivable at the beginning of the year are $335. The company has a 45-day collection period. Calculate cash collections in each of the four quarters by completing the following: Note: Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32. Beginning receivables Sales Cash collections Ending receivables S Beginning receivables Sales Cash collections Ending receivables S Q1 S 03 $ 890 Q1 335 750 Q1 04 $ 980 b. Accounts receivable at the beginning of the year are $335. The company has a 60-day collection period. Calculate cash collections in each of the four quarters by completing the following: Note: Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32. 335 750 Q2 335 750 Q2 810 Q2 810 Q3 810 Q3…
Financial information for Strawberry’s Place is as follows: Cash at 1/1/20X1 is $10,000. The firm desires to maintain a minimum balance of $10,000 at the end of each month. Total monthly sales are as follows: DecemberJanuaryFebruary 20X020X120X1 $120,000150,000 (est.)160,000 (est.) The sales are 40 percent cash and 60 percent credit card. Visa is the only acceptable credit card at Strawberry’s, and assume the charges are converted to cash the day of the sale. The brokerage charge is 2 percent of the sale. Expected other income is $2,000 from interest to be received in February. In addition, in January, a range with a net book value of $300 is expected to be sold for cash, resulting in a $1,000 gain on the sale. Food and beverages are paid for the month following the sale and average 40 percent and 25 percent, respectively. Food sales are four times beverage sales. Total sales consist of only food and beverage sales. Labor is paid for the last day of the month and…
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Jasper Company has sales on account and for cash. Speclfically, 63% of Its sales are on account and 37% are for cash. Credit sales are collected In full in the month following the sale. The compay forecasts sales of $526.000 for April, $536.,000 for May, and $561,000 for June. The beginning balance of Accounts Recetvable Is S291.600 on Aprll 1. Prepare a schedule of budgeted cash recelpts for Aprl, May, and June.
What is the forecasted accounts receivable on these general accounting question?
Here is a forecast of sales by National Bromide for the first 4 months of 2019 (figures in thousands of dollars): Month: 1 2 3 4 Cash sales 30 39 33 29 Sales on credit 175 195 165 145 On average, 60% of credit sales are paid for in the current month, 20% in the next month, and the remainder in the month after that. What are the expected cash collections in months 3 and 4? (Enter your answers in whole dollars not in thousands of dollars.) Expected Cash collections Months 3 ______________ Months 4 ______________
Please need your help
M&N Ltd sells security doors. Majority of its sales are on credit except small amount of cashsales each year. The accounting records at 30 June 2019 reveal the following. Ignore GST. Please see image for clear info Credit sales (for the year of 2019) $2,100,000Cash sales (for the year of 2019) 20,000Credit sales returns and allowances (for the year of 2019) 80,000Accounts receivable (balance at 30 June 2019) 593,000Allowance for doubtful debts (credit balance at 30 June 2019) 2,800The company’s yearly bad debts expense had been estimated at 2.5% of net credit sales revenue inthe past. The management of M&N Ltd has decided to compare the current method with anageing of accounts receivable method. The following analysis was obtained with respect to theaccounts receivable..Balance % of estimated uncollectable (Please see image for clear info)Accounts not yet due $351,200 1Accounts overdue 10 - 30 days 92,000 331 - 60 days 78,000 1061 - 120 days 40,800 30121 days and over 31,000…

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