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Dorothy 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: . ● October $53,600 52,000 November $56,300 62,000 December $56,200 53,700 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.

Dorothy 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: . ● October $53,600 52,000 November $56,300 62,000 December $56,200 53,700 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.

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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G.145.

 

Dorothy 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: ● . . . . . October $53,600 52,000 v ✓ 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. November Annual loan interest rate, 6%, with monthly interest payments required. Minimum monthly cash account balance, $10,000. Cash balance, September 30, $10,500. V $56,300 62,000 Complete the fourth-quarter cash budget for Dorothy, 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 eg.-45 or parentheses eg. (45)) V V December $56,200 53,700 $ $ October $ $ November $ $ December $ $ Quarter
Transcribed Image Text:Dorothy 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: ● . . . . . October $53,600 52,000 v ✓ 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. November Annual loan interest rate, 6%, with monthly interest payments required. Minimum monthly cash account balance, $10,000. Cash balance, September 30, $10,500. V $56,300 62,000 Complete the fourth-quarter cash budget for Dorothy, 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 eg.-45 or parentheses eg. (45)) V V December $56,200 53,700 $ $ October $ $ November $ $ December $ $ Quarter
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