GigaTech Corporation has a cash balance of $22,500 on June 1. The company must maintain a minimum cash balance of $20,000. During June, expected cash receipts are $75,000. Cash disbursements 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 • d. $13,000
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- Calculate the monthly finance charge for the credit card transaction. Assume that it takes 10 days for a payment to be received and recorded, and that the month is 30 days long. (Round your answer to the nearest cent.) $400 balance, 17%, $350 payment; average daily balance methodIf 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”?Calculate the monthly finance charge for the credit card transaction. Assume that it takes 10 days for a payment to be received and recorded, and that the month is 30 days long. (Round your answers to the nearest cent.) $9,000 balance, 13%, $60 payment
- Answer all the requirements1. 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:The Morning Jolt Coffee Company has projected the following quarterly sales amounts for the coming year 01 02 04 Sales # 330 $390 a. Accounts receivable at the beginning of the year are $360. The company has a 45-day collection period. Calculate cash collections in each of the four quarters by completing the following: Note: Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32. Beginning receivables Sales Cash collections Ending receivables 03 $450 Beginning receivables Sales Cash collections Ending receivables S Beginning receivables Sales Cash collections Ending receivables 01 01 300 330 01 330 b. Accounts receivable at the beginning of the year are $360. The company has a 60-day collection period Calculate cash collections in each of the four quarters by completing the following: Note: Do not round intermediate calculations and round your answers to the nearest whole number, e-g.. 32. 02 330 02 390 Q² 390 03 350 03 450 03 c. Accounts…
- Karim Corp. requires a minimum $9,000 cash balance. Loans taken to meet this requirement cost 1% interest per month (paid monthly). Any excess cash is used to repay loans at month-end. The cash balance on July 1 is $9,400, and the company has no outstanding loans. Forecasted cash receipts (other than for loans received) and forecasted cash payments (other than for loan or interest payments) follow. July August September Cash receipts $ 25,000 $ 33,000 $ 41,000 Cash payments 29,500 31,000 33,000 Prepare a cash budget for July, August, and September. (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign. Round your final answers to the nearest whole dollar.) KARIM CORP. Cash Budget For July, August, and September July August September Beginning cash balance $9,400 Total cash available Preliminary cash balance Ending cash…15. On December 31,2021, the Denjay Gift Shop had outstanding accounts receivable balance of P20,000. Denjay's sales are roughly evenly split between credit and cash sales, with half the credit sales collected in the month after sale and the remainder two months after the sale. historical and projected sales for the gift shop are: Month Sales October 2021 150,000 November 2021 200,000 December 2021 300,000 January 2022 (projected) 400,000 Under the circumstances what should the balance in accounts receivable be at the end of January 2022?Suppose that you borrow a loan of amount P from a bank at the end of month 3 and make the monthly deposits to the bank as in the cash flow diagram below. In the following cash flow diagram A7=A8=A9=1000, and starting with A10, deposits start decreasing in the amount of 40. However, due to a cash problem, you miss a payment at month 12 but continue with your original payment plan thereafter (that is, A10=960, A11=920, A12=0, A13=840 etc). With these payments, your dept to the bank will be 0 at the end of month 20. Assuming that the interest rate is 12% compounded monthly. 1-Find out the initial loan amount P. 2-Find the total interest paid to the bank
- Calculate the monthly finance charge for the credit card transaction. Assume that it takes 10 days for a payment to be received and recorded, and that the month is 30 days long. (Round your answer to the nearest cent.) $850 balance, 18%, $800 payment; average daily balance methodFinancial information for Strawberry’s Place is as follows: Cash at 1/1/20X1 is $10,000. The firm desires to maintain a minimum balance of $10,000 at the end of each month. Total monthly sales are as follows: DecemberJanuaryFebruary 20X020X120X1 $120,000150,000 (est.)160,000 (est.) The sales are 40 percent cash and 60 percent credit card. Visa is the only acceptable credit card at Strawberry’s, and assume the charges are converted to cash the day of the sale. The brokerage charge is 2 percent of the sale. Expected other income is $2,000 from interest to be received in February. In addition, in January, a range with a net book value of $300 is expected to be sold for cash, resulting in a $1,000 gain on the sale. Food and beverages are paid for the month following the sale and average 40 percent and 25 percent, respectively. Food sales are four times beverage sales. Total sales consist of only food and beverage sales. Labor is paid for the last day of the month and…Queen Savings is attempting to determine its liquidity requirements for the month of September. September is usually a month of heavy loan demand due to the beginning of the school term and the buildup of business inventories of goods and services for the fall season and winter. This bank has analyzed its deposit accounts thoroughly and classified them as shown in the table below. Hot money funds Vulnerable funds Stable (core) funds Totals Source ($'s in millions) Checking Deposits $10 $65 $85 $160 Savings Deposits $5 $152 $450 $607 Timing Deposits $1,200 $740 $172 $2,112 Totals $1,215 $957 $707 $2,879 Management has elected to hold a 85 percent reserve in liquid assets or borrowing capacity for each dollar of hot money deposits, a 25 percent reserve behind vulnerable deposits, and a 5 percent reserve for its holdings of core funds. Assume time and savings deposit accounts carry a zero percent legal reserve requirement and all checkable deposits carry a 3 percent legal reserve…