MCQ Crescent Corporation has a cash balance of$22,500 on May 1. The company mustmaintain a minimum cash balance of $18,000.During May, expected cash receipts are$55,000. Cash disbursements during themonth are expected to total $72,500. Ignoringinterest payments, during May the companywill need to borrow:a. $10,000 b. $13,000 c. $20,000 d. $5,000

Explanation of Cash Balance: Cash balance represents the total amount of money a company has…

Answered: Crescent Corporation has a cash balance…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter8: Budgeting

Section: Chapter Questions

Problem 18E

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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
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
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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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Ramon Manufacturing has a cash balance of P8,000 on August 1 of the current year.The company’s controller forecast the following cash receipts and cash disbursementsfor the upcoming two months of activity.Receipts PaymentsAugust P 45,000 P 57,000September 66,000 56,000Management desires to maintain a minimum cash balance of P8,000 at all times. If necessary, additional financing can be obtained in P1,000 multiples at a 12% interest rate. All borrowings are made at the beginning of the month; debt retirement, on the otherhand, occurs at the end of the month. Interest is paid at the time of repaying loan principal and is computed on the portion of debt repaid. 1. Determine the ending cash balance in August both before and after anynecessary financing or debt retirement.
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