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Describe your findings and indicates the maximum amount of bank borrowing that is needed from the following statements.

Describe your findings and indicates the maximum amount of bank borrowing that is needed from the following statements.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Describe your findings and indicates the maximum amount of bank borrowing that is needed from the following statements.

Cash Budget October November December Sales $ 1,000,000.00 $ 1,500,000.00 $ 3,000,000.00 Cash Collected on Sales $ 1,000,000.00 $ 1,500,000.00 Cash Payment for Purchase Other Expense $ 800,000.00 $ 1,200,000.00 $ 2,400,000.00 70,000.00 $ 105,000.00 $ 10,000.00 $ 210,000.00 Depreciation amount $ 10,000.00 $ 10,000.00 Interest Expense $ 12,000.00 $ 12,000.00 $ 12,000.00 Income Before Tax $ $ 108,000.00 $ 173,000.00$ 368,000.00 Тах Paid $ Net Income $ $ 108,000.00 $ 173,000.00 $ 368,000.00 Cash Budget and Pro Forma of Cash Flow Statement October November December $ 1,000,000.00 $ 1,500,000.00 $ 3,000,000.00 700,000.00 $ 1,000,000.00 $ 800,000.00 $ 1,200,000.00 $ 70,000.00 $ 105,000.00 $ Sales 1,500,000.00 2,400,000.00 Cash Collected on Sales Cash Payment for Purchase Other Expenses Paid |Таax Paid Surplus 210,000.00 $ (170,000.00) $ (305,000.00) $ (1,110,000.00) 50,000.00 $ (120,000.00) $ (425,000.00) $ (120,000.00) $ (425,000.00) $ (1,535,000.00) Cash Flows from Operating Activities $ (170,000.00) $ (305,000.00)$ (1,110,000.00) Opening Balance Closing Balance
Transcribed Image Text:Cash Budget October November December Sales $ 1,000,000.00 $ 1,500,000.00 $ 3,000,000.00 Cash Collected on Sales $ 1,000,000.00 $ 1,500,000.00 Cash Payment for Purchase Other Expense $ 800,000.00 $ 1,200,000.00 $ 2,400,000.00 70,000.00 $ 105,000.00 $ 10,000.00 $ 210,000.00 Depreciation amount $ 10,000.00 $ 10,000.00 Interest Expense $ 12,000.00 $ 12,000.00 $ 12,000.00 Income Before Tax $ $ 108,000.00 $ 173,000.00$ 368,000.00 Тах Paid $ Net Income $ $ 108,000.00 $ 173,000.00 $ 368,000.00 Cash Budget and Pro Forma of Cash Flow Statement October November December $ 1,000,000.00 $ 1,500,000.00 $ 3,000,000.00 700,000.00 $ 1,000,000.00 $ 800,000.00 $ 1,200,000.00 $ 70,000.00 $ 105,000.00 $ Sales 1,500,000.00 2,400,000.00 Cash Collected on Sales Cash Payment for Purchase Other Expenses Paid |Таax Paid Surplus 210,000.00 $ (170,000.00) $ (305,000.00) $ (1,110,000.00) 50,000.00 $ (120,000.00) $ (425,000.00) $ (120,000.00) $ (425,000.00) $ (1,535,000.00) Cash Flows from Operating Activities $ (170,000.00) $ (305,000.00)$ (1,110,000.00) Opening Balance Closing Balance
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