Describe your findings and indicates the maximum amount of bank borrowing that is needed from the following statements. Cash BudgetOctoberNovemberDecemberSales$ 1,000,000.00 $ 1,500,000.00 $3,000,000.00Cash Collected on Sales$ 1,000,000.00 $1,500,000.00Cash Payment for PurchaseOther Expense$ 800,000.00 $ 1,200,000.00 $ 2,400,000.0070,000.00 $ 105,000.00 $10,000.00 $210,000.00Depreciation amount$10,000.00 $10,000.00Interest Expense$12,000.00 $ 12,000.00 $12,000.00Income Before Tax$$ 108,000.00 $ 173,000.00$368,000.00Тах Paid$Net Income$$ 108,000.00 $ 173,000.00 $368,000.00Cash Budget and Pro Forma of Cash Flow StatementOctoberNovemberDecember$ 1,000,000.00 $ 1,500,000.00 $ 3,000,000.00700,000.00 $ 1,000,000.00 $800,000.00 $ 1,200,000.00 $70,000.00 $ 105,000.00 $Sales1,500,000.002,400,000.00Cash Collected on SalesCash Payment for PurchaseOther Expenses Paid|Таax PaidSurplus210,000.00$ (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 BalanceClosing Balance

Cash budget is defined as cash inflows as well as outflows estimation of the company over the…

Answered: Describe your findings and indicates…

Business

Accounting

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

Financial & Managerial Accounting

13th Edition

ISBN:9781285866307

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter21: Budgeting

Section: Chapter Questions

Problem 9DQ: A. Discuss the purpose of the cash budget. B. If the cash for the first quarter of the fiscal year...

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