Hoppy Company requires a minimum cash balance of $3,500.When the company expects a cash deficiency, it borrows the exact amount required on the first of themonth. Expected excess cash is used to repay any amounts owed. Interest owed from the previousmonth's principal balance is paid on the first of the month atcompleted the budgeting process for the first quarter for cash receipts and cash payments for allexpenses except interest.|per year. The company has alreadyHoppy CompanyCash BudgetFor the Three Months Ended March 31JanuaryFebruaryMarchTotalBeginning cash balance243,500Cash receipts19,00027,50042,00088,500Cash available22,500Cash payments:Allexpenses except interest34,00035,00039,000108,000Interest expenseTotal cash payments34,000Ending cash balance before fiOnancingMinimum cash balance desired(3,500)(3,500)(3,500)(3,500)(Complete all input fields. Enter a "0" forany zero balances. Round all amounts entered into the cash budget to the nearest whole dollar. Enter acash deficiency and/or negative effects of financing with a minus sign or parentheses.)

A cash budget is an estimation of expected cash receipts and disbursements on the basis of past…

Hoppy Company requires a minimum cash balance of $3,500. When the company expects a cash deficiency, it borrows the exact amount required on the first of the month. Expected excess cash is used to repay any amounts owed. Interest owed from the previous month's principal balance is paid on the first of the month at completed the budgeting process for the first quarter for cash receipts and cash payments for all expenses except interest. Iper year. The company has alread Hoppy Company Cash Budget For the Three Months Ended March 31 January February March Total 3,500 19,000 Beginning cash balance Cash receipts 27,500 42,000 88,500 Cash available 22,500 Cash payments: All expenses except interest 34,000 35,000 39,000 108,000 Interest expense Total cash payments 34,000 Ending cash balance before fiOnancing Minimum cash balance desired (3,500) (3,500) (3,500) (3,500) (Complete all input fields. Enter a "0" any zero balances. Round all amounts entered into the cash budget to the nearest whole dollar. Ente cash deficiency and/or negative effects of financing with a minus sian or parentheses.)

Hoppy Company requires a minimum cash balance of $3,500. When the company expects a cash deficiency, it borrows the exact amount required on the first of the month. Expected excess cash is used to repay any amounts owed. Interest owed from the previous month's principal balance is paid on the first of the month at completed the budgeting process for the first quarter for cash receipts and cash payments for all expenses except interest. Iper year. The company has alread Hoppy Company Cash Budget For the Three Months Ended March 31 January February March Total 3,500 19,000 Beginning cash balance Cash receipts 27,500 42,000 88,500 Cash available 22,500 Cash payments: All expenses except interest 34,000 35,000 39,000 108,000 Interest expense Total cash payments 34,000 Ending cash balance before fiOnancing Minimum cash balance desired (3,500) (3,500) (3,500) (3,500) (Complete all input fields. Enter a "0" any zero balances. Round all amounts entered into the cash budget to the nearest whole dollar. Ente cash deficiency and/or negative effects of financing with a minus sian or parentheses.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

A company requires a minimum $12,400 cash balance at each month-end. If necessary, a loan is taken to meet this requirement at a cost of 1% interest per month (paid at the end of each month). Any preliminary cash balance above $12,400 is used to repay loans at month-end. The cash balance on March 1 is $12,400, and the company has no outstanding loans. Budgeted cash receipts from sales are: March, $26,000; April, $32,400; and May, $41,000. Budgeted cash payments (excluding loan or interest payments) are: March, $30,000; April, $30,200; and May, $32,400. Required: Prepare a cash budget for March, April, and May. Note: Negative balances and Loan repayment amounts (if any) should be indicated with minus sign. Round your final answers to the nearest whole dollar. Beginning cash balance Add: Cash receipts from sales Total cash available Add: Cash receipts from sales Total cash payments Preliminary cash balance Loan activity Additional loan (loan repayment) Ending cash balance Loan balance,…
Vargas Company is preparing a cash budget for April. The company has $27,000 cash at the beginning of April and anticipates $60,000 in cash receipts and $64,500 in cash disbursements during April. Vargas Company has an agreement with its bank to maintain a cash balance of at least $25,000. To maintain the $25,000 required balance, during April the company must: Borrow $2,500 from the owner. Borrow $5,000 from the owner. Borrow $7,500 from the owner. Borrow $4,500 from anyone other than the bank or the owner.
Boris detergents expects to have a cash balance of P46,000 on January 1, 2020. These are the relevant monthly budget data for the first two months of 2017. 1. Collections from customers: January P71,000, February P146,000. 2. Payments to suppliers: January P40,000, February P75,000. 3. Wages: January P30,000, February P40,000. Wages are paid in the month they are incurred. 4. Administrative expenses: January P21,000, February P24,000. These costs include depreciation of P1,000 per month. All other costs are paid as incurred. 5. Selling expenses: January P15,000, February P20,000. These costs are exclusive of depreciation. They are paid as incurred. 6. Sales of short-term investments in January are expected to realize P12,000 in cash. The Company has a line of credit at a local bank that enables it to borrow up to P25,000. The company wants to maintain a minimum monthly cash balance of P20,000. Prepare a cash budget for January and February.
Ewing Company is preparing a cash budget for September. The following information on accounts receivable collections is available from past collection experience. Percent of current month’s sales collected this month 20 % Percent of prior month’s sales collected this month 57 Percent of sales two months prior to current month collected this month 12 Percent of sales three months prior to current month collected this month 8 The remaining 3 percent is not collected and is written off as bad debts. Credit sales to date are as follows. September—estimated $ 280,000 August 252,000 July 240,000 June 286,000 Required: What are the estimated cash receipts from accounts receivable collections in September?
Question 3. Please fill in the blanks the same way as the question
s
Santos Company is preparing a cash budget for February. The company has $16,000 cash at the beginning of February and budgets $65,000 in cash receipts from sales and $114,000 in cash payments during February. Prepare the cash budget for February assuming the company maintains a $5,000 minimum cash balance and will take a loan if necessary to maintain this balance. The company has no loans outstanding on February 1. (Negative cash balances, if any, should be indicated with minus sign.) SANTOS COMPANY Cash Budget February Beginning cash balance Total cash available Preliminary cash balance Loan activity Ending cash balance Loan balance, end of month
Kayak Company budgeted the following cash receipts (excluding cash receipts from loans received) and cash payments (excluding cash payments for loan principal and interest payments) for the first three months of next year. Cash Receipts Cash payments January $ 524,000 $ 465,300 February 412,500 353,800 March 475,000 526,000 Kayak requires a minimum cash balance of $40,000 at each month-end. Loans taken to meet this requirement charge 1%, interest per month, paid at each month-end. The interest is computed based on the beginning balance of the loan for the month. Any preliminary cash balance above $40,000 is used to repay loans at month-end. The company has a cash balance of $40,000 and a loan balance of $80,000 at January 1. Prepare monthly cash budgets for January, February, and March.
Coronado, Inc. prepared the following cash budget for the fourth quarter. Fill in the missing amounts, assuming that Coronado desires to maintain a $15,000 minimum monthly cash balance and all equipment was purchased during December. Any required borrowings and repayments must be made in even increments of $1,000. (Enter answers in necessary fields only. Leave other fields blank. Do not enter 0.) Please help me fill in the blanks with work so I can follow along.
Motors Corporation manufactures motors for dirt bikes. The company requires a minimum $30,000 cash balance at each month-end. If necessary, the company borrows to meet this requirement at a cost of 2% interest per month (paid at the end of each month). Any preliminary cash balance above $30,000 at month-end is used to repay loans. The cash balance on July 1 is $30,000, and the company has no outstanding loans. Budgeted cash receipts and budgeted cash payments (other than for interest on the loan and loan activity) follow. Cash receipts Cash payments Beginning cash balance July August $ 81,000 $ 107,000 109,000 95,900 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.) Total cash available MOTORS CORPORATION Cash Budget Total cash payments Preliminary cash balance Additional loan (loan repayment) Ending cash balance Loan activity Loan…
Kayak Company budgeted the following cash receipts (excluding cash receipts from loans received) and cash payments excluding cash payments for loan principal and interest payments) for the first three months of next year. January February March Cash Receipts $ 521,000 410,500 480,000 Cash payments $ 467,800 357,300 528,000 Kayak requires a minimum cash balance of $30,000 at each month-end. Loans taken to meet this requirement charge 1%, interest per month, paid at each month-end. The interest is computed based on the beginning balance of the loan for the month. Any preliminary cash balance above $30,000 is used to repay loans at month-end. The company has a cash balance of $30,000 and a loan balance of $60,000 at January 1. Prepare monthly cash budgets for January, February, and March. Note: Negative balances and Loan repayment amounts (if any) should be indicated with minus sign. Beginning cash balance Add: Cash receipts Total cash available KAYAK COMPANY Cash Budget January $ 30,000…
The company provides the following information regarding the cash budget for next year: Quarter 1 Quarter 2 Quarter 3 Quarter 4 Beginning cash balance $5,000 $5,000 $5,000 $5,000 Excess (Deficiency) ($3,000) $2,000 ($2,500) $1,000 The company's policy is to start each quarter with a cash balance of $5,000.The company has access to a line of credit in the amount of $50,000 for any short term borrowing needs and pays the loans off as quickly as possible.The company assumes the cash budget for the year will begins with no loans.What is the expected loan balance at the end of Quarter 2 (ignore interest)?