Provide solution for this question Harrah Company provided the following information for the monthof October:Beginning cash balance: $35,000Cash receipts: $460,000Cash disbursements: $485,000Harrah's policy is to keep a minimum end-of-the-month cashbalance of $30,000. How much will Harrah's need to borrow duringOctober?a. $20,000b. $25,000c. $10,000d. $0

Step 1 - Calculate the Ending Cash Balance Without Borrowing.First, we need to calculate what the…

Answered: Harrah Company provided the following…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter8: Budgeting

Section: Chapter Questions

Problem 18E

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Harrah Company provided the following information for the month of October: Beginning cash balance $ 35,000 Cash receipts 460,000 Cash disbursements 485,000 Harrah's policy is to keep a minimum end of the month cash balance of $30,000. How much will Harrah's need to borrow during October?
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Financial 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…

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