Eren Retail Company was recently ereated with a beginning cash balance of P12,000. The owner expects the following for the first month of operations: Cash sales to customers.. P8,000 Sales on account to customers.... P30,000 Cash collected from account customers.. Cost of merchandise purchased.. |Cash paid for merchandise purchased. Cost of merchandise sold.. Cash paid for display cases.. Selling and administrative expenses.. P12,000 P35,000 P24,500 P26,600 P9,600 P4,000 The display cases above were purchased at the beginning of the month and are being depreciated at a rate of P200 per month. This amount is included in the selling and administrative expenses figure above. All other selling and administrative expenses are paid as incurred. Eren wants to maintain a cash balance of P10,000. Any amount below this can be borrowed from a local bank as needed in increments of P1,000. All borrowings are made at month end. In Eren's cash budget for this first month, how much money will Eren need to borrow at month end?
Eren Retail Company was recently ereated with a beginning cash balance of P12,000. The owner expects the following for the first month of operations: Cash sales to customers.. P8,000 Sales on account to customers.... P30,000 Cash collected from account customers.. Cost of merchandise purchased.. |Cash paid for merchandise purchased. Cost of merchandise sold.. Cash paid for display cases.. Selling and administrative expenses.. P12,000 P35,000 P24,500 P26,600 P9,600 P4,000 The display cases above were purchased at the beginning of the month and are being depreciated at a rate of P200 per month. This amount is included in the selling and administrative expenses figure above. All other selling and administrative expenses are paid as incurred. Eren wants to maintain a cash balance of P10,000. Any amount below this can be borrowed from a local bank as needed in increments of P1,000. All borrowings are made at month end. In Eren's cash budget for this first month, how much money will Eren need to borrow at month end?
Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
Chapter21: Cash Budgeting (cashbud)
Section: Chapter Questions
Problem 1R: On January 1, Sweet Pleasures, Inc., begins business. The company has 14,000 cash on hand and is...
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![Eren Retail Company was recently created with a beginning cash balance of P12,000.
The owner expects the following for the first month of operations:
Cash sales to customers...
P8,000
Sales on account to customers...
P30,000
Cash collected from account customers..
P12,000
Cost of merchandise purchased..
P35,000
P24,500
Cash paid for merchandise purchased..
Cost of merchandise sold..
P26,600
Cash paid for display cases...
Selling and administrative expenses.
P9,600
P4,000
The display cases above were purchased at the beginning of the month and are being
depreciated at a rate of P200 per month. This amount is included in the selling and
administrative expenses figure above. All other selling and administrative expenses
are paid as incurred. Eren wants to maintain a cash balance of P10,000. Any amount
below this can be borrowed from a local bank as needed in increments of P1,000. All
borrowings are made at month end. In Eren's cash budget for this first month, how
much money will Eren need to borrow at month end?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc2632aca-6e45-41d3-884e-f7cbdcb893fe%2Fa6252fb4-b410-4ede-b3e8-bc9ff631f9c8%2Fh0wokf_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Eren Retail Company was recently created with a beginning cash balance of P12,000.
The owner expects the following for the first month of operations:
Cash sales to customers...
P8,000
Sales on account to customers...
P30,000
Cash collected from account customers..
P12,000
Cost of merchandise purchased..
P35,000
P24,500
Cash paid for merchandise purchased..
Cost of merchandise sold..
P26,600
Cash paid for display cases...
Selling and administrative expenses.
P9,600
P4,000
The display cases above were purchased at the beginning of the month and are being
depreciated at a rate of P200 per month. This amount is included in the selling and
administrative expenses figure above. All other selling and administrative expenses
are paid as incurred. Eren wants to maintain a cash balance of P10,000. Any amount
below this can be borrowed from a local bank as needed in increments of P1,000. All
borrowings are made at month end. In Eren's cash budget for this first month, how
much money will Eren need to borrow at month end?
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