Graham Potato Company has projected sales of $12,000 in September, $15,000 in October, $22, 000 in November, and $18,000 in December. Of the company's sales, 30 percent are paid for by cash and 70 percent are sold on credit. Experience shows that 40 percent of accounts receivable are paid in the month after the sale, while the remaining 60 percent are paid two months after. Determine collections for November and December. Also assume Graham's cash payments for November and December are $ 18,500 and $11,000, respectively. The beginning cash balance in November is $5,000, which is the desired minimum balance. b. Prepare a cash budget with borrowing needed or repayments for November and December. Note: Negative amounts should be indicated by a minus sign. Assume the November beginning loan balance is $0. Leave no cells blank be certain to enter 0 wherever required. \ table[[Graham Potato Company], [Cash Budget,], [Total cash receipts, November, December], [Total cash payments,,], [Net cash flow,,], [Beginning cash balance,,], [Cumulative cash balance,,]] b. Prepare a cash budget with borrowing needed or repayments for November and December. Note: Negative amounts should be indicated by a minus sign. Assume the November beginning loan balance is $0. Leave cells blank be certain to enter O wherever required. Total cash receipts Total cash payments Net cash flow Beginning cash balance Cumulative cash balance Graham Potato Company Cash Budget November December
Graham Potato Company has projected sales of $12,000 in September, $15,000 in October, $22, 000 in November, and $18,000 in December. Of the company's sales, 30 percent are paid for by cash and 70 percent are sold on credit. Experience shows that 40 percent of accounts receivable are paid in the month after the sale, while the remaining 60 percent are paid two months after. Determine collections for November and December. Also assume Graham's cash payments for November and December are $ 18,500 and $11,000, respectively. The beginning cash balance in November is $5,000, which is the desired minimum balance. b. Prepare a cash budget with borrowing needed or repayments for November and December. Note: Negative amounts should be indicated by a minus sign. Assume the November beginning loan balance is $0. Leave no cells blank be certain to enter 0 wherever required. \ table[[Graham Potato Company], [Cash Budget,], [Total cash receipts, November, December], [Total cash payments,,], [Net cash flow,,], [Beginning cash balance,,], [Cumulative cash balance,,]] b. Prepare a cash budget with borrowing needed or repayments for November and December. Note: Negative amounts should be indicated by a minus sign. Assume the November beginning loan balance is $0. Leave cells blank be certain to enter O wherever required. Total cash receipts Total cash payments Net cash flow Beginning cash balance Cumulative cash balance Graham Potato Company Cash Budget November December
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Raghubhai
![Graham Potato Company has projected sales of $12,000 in September, $15,000 in October, $22, 000 in
November, and $18,000 in December. Of the company's sales, 30 percent are paid for by cash and 70
percent are sold on credit. Experience shows that 40 percent of accounts receivable are paid in the month
after the sale, while the remaining 60 percent are paid two months after. Determine collections for
November and December. Also assume Graham's cash payments for November and December are $
18,500 and $11,000, respectively. The beginning cash balance in November is $5,000, which is the
desired minimum balance. b. Prepare a cash budget with borrowing needed or repayments for
November and December. Note: Negative amounts should be indicated by a minus sign. Assume the
November beginning loan balance is $0. Leave no cells blank be certain to enter 0 wherever required. \
table [[Graham Potato Company], [Cash Budget,], [Total cash receipts, November, December], [Total cash
payments,,], [Net cash flow,,], [Beginning cash balance,,], [Cumulative cash balance,,]]
b. Prepare a cash budget with borrowing needed or repayments for November and December.
Note: Negative amounts should be indicated by a minus sign. Assume the November beginning loan balance is $0. Leave no
cells blank be certain to enter O wherever required.
Total cash receipts
Total cash payments
Net cash flow
Beginning cash balance
Cumulative cash balance
Graham Potato Company
Cash Budget
November
December](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcc75690e-f7d9-4c6f-adb0-1d43acce21b6%2F1df39180-1169-44d4-87ad-0ff6b8a6254d%2Ff12m9sg_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Graham Potato Company has projected sales of $12,000 in September, $15,000 in October, $22, 000 in
November, and $18,000 in December. Of the company's sales, 30 percent are paid for by cash and 70
percent are sold on credit. Experience shows that 40 percent of accounts receivable are paid in the month
after the sale, while the remaining 60 percent are paid two months after. Determine collections for
November and December. Also assume Graham's cash payments for November and December are $
18,500 and $11,000, respectively. The beginning cash balance in November is $5,000, which is the
desired minimum balance. b. Prepare a cash budget with borrowing needed or repayments for
November and December. Note: Negative amounts should be indicated by a minus sign. Assume the
November beginning loan balance is $0. Leave no cells blank be certain to enter 0 wherever required. \
table [[Graham Potato Company], [Cash Budget,], [Total cash receipts, November, December], [Total cash
payments,,], [Net cash flow,,], [Beginning cash balance,,], [Cumulative cash balance,,]]
b. Prepare a cash budget with borrowing needed or repayments for November and December.
Note: Negative amounts should be indicated by a minus sign. Assume the November beginning loan balance is $0. Leave no
cells blank be certain to enter O wherever required.
Total cash receipts
Total cash payments
Net cash flow
Beginning cash balance
Cumulative cash balance
Graham Potato Company
Cash Budget
November
December
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