Fast Feet Inc makes running shoes and they have gathered the following data for the month of October: Cash on 10/1 Expected Cash Collections Direct Materials Cash Disbursements Direct Labor Cash Disbursements MOH Cash Disbursements Operating Expenses Cash Disbursements Capital Expenditures Cash Disbursements Data $16,000 $459,000 $86,000 $41,000 $28,000 $113,000 $205,000 Fast Feet Inc requires an ending cash balance of at least $12,000 and can borrow from a line of credit in $1,000 increments. How much will the company need to borrow at the end of October? OA. $10,000 OB. $2,000 OC. $16,000 OD. $0 +

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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Fast Feet Inc makes running shoes and they have gathered the following data for the month of October:
Cash on 10/1
Expected Cash Collections
Direct Materials Cash Disbursements
Direct Labor Cash Disbursements
MOH Cash Disbursements
Operating Expenses Cash Disbursements
Capital Expenditures Cash Disbursements
Data
$16,000
$459,000
$86,000
$41,000
$28,000
$113,000
$205,000
Fast Feet Inc requires an ending cash balance of at least $12,000 and can borrow from a line of credit in $1,000 increments. How much will the company need to borrow at the end of October?
OA. $10,000
OB. $2,000
OC. $16,000
OD. $0
+
Transcribed Image Text:Fast Feet Inc makes running shoes and they have gathered the following data for the month of October: Cash on 10/1 Expected Cash Collections Direct Materials Cash Disbursements Direct Labor Cash Disbursements MOH Cash Disbursements Operating Expenses Cash Disbursements Capital Expenditures Cash Disbursements Data $16,000 $459,000 $86,000 $41,000 $28,000 $113,000 $205,000 Fast Feet Inc requires an ending cash balance of at least $12,000 and can borrow from a line of credit in $1,000 increments. How much will the company need to borrow at the end of October? OA. $10,000 OB. $2,000 OC. $16,000 OD. $0 +
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