Donna is a true accountant: she not only likes knowing where every dollar is going, she is obsessed with it. So she is happy to take on the cash budget for this small company. She wants to go back through the fourth-quarter plan with a fine-toothed comb before working on the following calendar year's cash budget. After reviewing many notes from the management team, she has the following information. Cash receipts Cash disbursements Addition information: ● ● ● ● ● eTextbook and Media Save for Later $ October eTextbook and Media Save for Later October $53,500 Line of credit withdrawals must be made on the first of the month in $1,000 increments. Line of credit payments must be made on the last day of the month in $1,000 increments. Credit line balance, September 30, $2,000. Annual loan interest rate, 6%, with monthly interest payments required. Minimum monthly cash account balance, $10,000. Cash balance, September 30, $10,400. Complete the fourth-quarter cash budget for Donna, reporting amounts for each month and for the quarter overall. (Round answers to 2 decimal places, e.g. 15.25. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) October 51,700 November December November $56,400 $ Is this an issue? 62.600 $ December $55,700 53,600 Complete the fourth-quarter cash budget for Donna, reporting amounts for each month and for the quarter overall. (Round answers to 2 decimal places, e.g. 15.25. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) November $ $ $ October $ $ December $ November Attempts: 0 of 2 used $ $ Submit Answer Assume company executives prefer not to borrow more than $5,000 from the company's line of credit at any given time (because debt in any amount makes them nervous). In this fourth quarter, is this an issue? If so, identify for which month(s) it is an issue. Quarter Attempts: 0 of 2 used Submit Answer
Donna is a true accountant: she not only likes knowing where every dollar is going, she is obsessed with it. So she is happy to take on the cash budget for this small company. She wants to go back through the fourth-quarter plan with a fine-toothed comb before working on the following calendar year's cash budget. After reviewing many notes from the management team, she has the following information. Cash receipts Cash disbursements Addition information: ● ● ● ● ● eTextbook and Media Save for Later $ October eTextbook and Media Save for Later October $53,500 Line of credit withdrawals must be made on the first of the month in $1,000 increments. Line of credit payments must be made on the last day of the month in $1,000 increments. Credit line balance, September 30, $2,000. Annual loan interest rate, 6%, with monthly interest payments required. Minimum monthly cash account balance, $10,000. Cash balance, September 30, $10,400. Complete the fourth-quarter cash budget for Donna, reporting amounts for each month and for the quarter overall. (Round answers to 2 decimal places, e.g. 15.25. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) October 51,700 November December November $56,400 $ Is this an issue? 62.600 $ December $55,700 53,600 Complete the fourth-quarter cash budget for Donna, reporting amounts for each month and for the quarter overall. (Round answers to 2 decimal places, e.g. 15.25. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) November $ $ $ October $ $ December $ November Attempts: 0 of 2 used $ $ Submit Answer Assume company executives prefer not to borrow more than $5,000 from the company's line of credit at any given time (because debt in any amount makes them nervous). In this fourth quarter, is this an issue? If so, identify for which month(s) it is an issue. Quarter Attempts: 0 of 2 used Submit Answer
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Question
Transcribed Image Text:Donna is a true accountant: she not only likes knowing where every dollar is going, she is obsessed with it. So she is happy to take on the
cash budget for this small company. She wants to go back through the fourth-quarter plan with a fine-toothed comb before working on
the following calendar year's cash budget. After reviewing many notes from the management team, she has the following information.
Cash receipts
Cash disbursements
Addition information:
●
●
●
●
eTextbook and Media
Save for Later
$
October
eTextbook and Media
Save for Later
October
$53,500
Line of credit withdrawals must be made on the first of the month in $1,000 increments.
Line of credit payments must be made on the last day of the month in $1,000 increments.
Credit line balance, September 30, $2,000.
Annual loan interest rate, 6%, with monthly interest payments required.
Minimum monthly cash account balance, $10,000.
Cash balance, September 30, $10,400.
Complete the fourth-quarter cash budget for Donna, reporting amounts for each month and for the quarter overall. (Round
answers to 2 decimal places, e.g. 15.25. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses
e.g. (45).)
October
51,700
November
December
November
$56,400
$
Is this an issue?
62.600
$
December
$55,700
53,600
Complete the fourth-quarter cash budget for Donna, reporting amounts for each month and for the quarter overall. (Round
answers to 2 decimal places, e.g. 15.25. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses
e.g. (45).)
November
$
$
$
October
$
$
December
$
November
Attempts: 0 of 2 used
$
$
Submit Answer
Assume company executives prefer not to borrow more than $5,000 from the company's line of credit at any given time (because
debt in any amount makes them nervous). In this fourth quarter, is this an issue? If so, identify for which month(s) it is an issue.
Quarter
Attempts: 0 of 2 used
Submit Answer
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