GigaTech Corporation has a cash balance of $22,500 on June 1. The company must maintain aminimum cash balance of $20,000. During June, expected cash receipts are $75,000. Cashdisbursements during the month are expected to total $90,000. Ignoring interest payments,during June the company will need to borrow:⚫ a. $12,500⚫ b. $10,500⚫ c. $15,000•$13.000

Step 1: Calculation of required borrowing…

Answered: GigaTech Corporation has a cash balance…

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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Your office supply has a line of credit that charges an annual percentage rate of prime rate plus 3%. Their starting balance on March 1st was $10,600. On March 5th they borrowed $7,500. On March 14th the business made a payment of $3,300 and in March 18th they borrowed $5,300. If the current prime rate is 9% what is the new balance? $26,100.00 $20,276.10 $27,583.43 $18,400.29
Give me answer the question
If Service World has $1,950 cash, $400 of government Treasury bills purchased last month with a six-week maturity, and $940 of cash set aside for legal reasons, how much will the company report on the balance sheet as “Cash and Cash Equivalents”?
20. Kiwi Company has an agreement with a major credit card company which calls for cash to be received ten days upon deposit of Kiwi customers' credit card sales receipts. The credit card company receives 3% of card sales as its fee. If Kiwi has $6,000 in credit card sales, show the journal entries to record the sales, and receipt of customer's payment.
Sparks Corporation has a cash balance of $24,100 on April 1. The company must maintain a minimum cash balance of $6,500. During April, expected cash receipts are $49,000. Cash disbursements during the month are expected to total $68,500. Ignoring interest payments, during April the company will need to borrow:
Some data regarding the financial enterprise are as follows;- The company collects its sales 25% in cash, 40%: 1 month term and the remainder with 2 months maturity.- Purchases are made in advance.- It is required to have 50000 balances in the cash register of the company at all times.- In cases where there is a deficit, credit will be used from the management bank and this deficit will be closed. Likewise, in cases of excess, the loans used from the relevant bank will be closed.- There is 35000 cash in the company account as of 30.04.2021. In addition, the company owes 75000 loans to the management bank as of the same date. When the cash budget of the enterprise for the period of May-August 2021 is prepared, what is the "cumulative loan" balance for August 2021?
1. The treasurer of Yoda Inc. needs to estimate cash collections from accounts receivable for September, October, and November 2022. Forty percent of the company's customer's pay in cash the rest are credit customers. The collection pattern for the credit customers is 20% in the month of the sale and 80% in the following month. They have zero uncollectible accounts. Estimated total sales are as follows: August $70,000 September $80,000 October $85,000 November $100,000 a. What is Yoda's cash collections for September, October, and November? - September cash collections: - October cash collections: - November cash collections: b. The accounts receivable balance at the end of November will be:
INFORMATIONThe following information was provided by Intel Enterprises:1. The bank balance on 31 December 2022 is expected to be R40 000 (unfavourable).2. Credit sales are expected to be as follows:December 2022 January 2023 February 2023R576 000 R540 000 R648 0003. Credit sales usually make up 40% of the total sales. Cash sales make up the balance. Cash customersreceive a 10% discount.4. Credit sales are normally collected as follows:* 30% in the month in which the transaction takes place, and these customers are entitled to a 5% discount.* 65% in the following monthThe rest is usually written off as bad debts.5. Budgeted purchases of inventory are as follows:December 2022 January 2023 February 2023R1 000 000 R800 000 R920 0006. Fifty percent (50%) of the purchases are for cash. The remainder is paid in the month after the purchase.7. The monthly salaries amount to R150 000. Salaries are expected to increase by 9% with…
Sparks Corporation has a cash balance of $17,700 on April 1. The company must maintain a minimum cash balance of $14,500. During April, expected cash receipts are $65,000. Cash disbursements during the month are expected to total $77,500. Ignoring interest payments, during April the company will need to borrow: Multiple Choice O $9,300 $5,200 $14,500 $12,500
Inc. maintains a cash buffer for unexpected cash outlays for the year amounting to 3,000. Bank of Wildcats charges Inc P15 for every transaction with the bank. The bank grants 5% annual interest. Inc is contemplation if it will still need to have the cash buffer. How much is the annual savings in annual holding cost of cash for Inc if it will not have a cash buffer?
2. A company is borrowing $1,000,000 for an office renovation. They agree to 25 annual payments. The rate is 3.75% annually compounded monthly. Compute their annual payment. b. Compute the amount of interest/principal paid with their 1t and last (i.e., 25th) payment. a. Please Draw Cash Flow Diagram

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