he following information is drawn from Royal Industries' cash budget: Cash Receipts Beginning Cash Balance Cash Payments Desired Ending Cash Cushion $40,300 $13,000 $48,900 $ 8,000 If there is a cash shortage, the company borrows money. If a surplus occurs funds are used to repay loans or to invest in short-term as had no debt before January 1st. The amounted "needed" to borrow or the amount "available" for repayment of debt in January would Multiple Choice $4,400 available. $3,600 needed.
he following information is drawn from Royal Industries' cash budget: Cash Receipts Beginning Cash Balance Cash Payments Desired Ending Cash Cushion $40,300 $13,000 $48,900 $ 8,000 If there is a cash shortage, the company borrows money. If a surplus occurs funds are used to repay loans or to invest in short-term as had no debt before January 1st. The amounted "needed" to borrow or the amount "available" for repayment of debt in January would Multiple Choice $4,400 available. $3,600 needed.
Financial & Managerial Accounting
14th Edition
ISBN:9781337119207
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter21: Budgeting
Section: Chapter Questions
Problem 9DQ: A. Discuss the purpose of the cash budget. B. If the cash for the first quarter of the fiscal year...
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The fourth option is $16,600 needed, below $12,400 available.
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