Revenue budget In the prior year, Grand Falls Bank (GFB) had $10,400,000 in business loans at an average interest rate percent as well as $8,320,000 in consumer loans with an average rate of 8 percent. GFB also has $1,950 invested in government securities that pay interest at an average rate of 2.5 percent. For the current year, GFB estimates that the volume of business loans will increase to $15,600,000, a interest rate will rise to 5 percent. It projects that consumer loans will be $10,400,000 and have an aver interest rate of 11 percent. The bank's government security investment will be $4,160,000 and will bear average interest rate of 4.5 percent. What is GFB's projected revenue for the current year? Projected revenue: $ 0

Revenue budget In the prior year, Grand Falls Bank (GFB) had $10,400,000 in business loans at an average interest rate percent as well as $8,320,000 in consumer loans with an average rate of 8 percent. GFB also has $1,950 invested in government securities that pay interest at an average rate of 2.5 percent. For the current year, GFB estimates that the volume of business loans will increase to $15,600,000, a interest rate will rise to 5 percent. It projects that consumer loans will be $10,400,000 and have an aver interest rate of 11 percent. The bank's government security investment will be $4,160,000 and will bear average interest rate of 4.5 percent. What is GFB's projected revenue for the current year? Projected revenue: $ 0

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The company wants to maintain a minimum cash balance of $35,000 and borrows from the local bank as needed in increments of $1,000 at the beginning of the quarter. Principal repayments are made at the beginning of the quarter when excess funds are available and in increments of $1,000. Interest is 6% per year and paid at the beginning of the quarter based on the amount outstanding from the previous quarter Kiara's Coats Cash Budget For the year ended December 31, 2021 First Quarter Second Quarter Third Quarter Fourth Quarter Total Beginning cash balance $38,000 $35,569 $35,185 Cash receipts $71,600 $75,400 91,650 107,900 346,550 Cash available $109,600 $110,969 126,835 Cash payments: Total cash payments before interest $107,031 $52,289 57,755 63,639 280,714 Interest expense $0 $495 495 Total cash payments $107,031 $52,784 58,250 Ending cash balance before financing $2,569 $58,185 68,535 Minimum cash balance desired…
Kayak Co. 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 $519,000 412,000 460,000 Cash payments $466,900 359,900 532,000 According to a credit agreement with the company's bank, Kayak promises to have a minimum cash balance of $50,000 at each month-end. In return, the bank has agreed that the company can borrow up to $150,000 at a monthly interest rate of 1%, paid on the last day of each month. The interest is computed based on the beginning balance of the loan for the month. The company repays loan principal with any cash in excess of $50,000 on the last day of each month. The company has a cash balance of $50,000 and a loan balance of $100,000 at January 1. Prepare monthly cash budgets for January, February, and March. (Negative balances and Loan repayment amounts (if any) should be…
The Lowville Company has budgeted the following data for November: • Sales of $1,728,300, all in cash. • A cash balance on November 1 of $72,000. • Cash disbursements (other than interest) during November of $1,740,000. • A minimum cash balance of $90,000 at the end of each month. The company has 2% open line of credit for $100,000. All borrowing will take place at the beginning of the month. The November interest will be paid in cash when repayment is made. The excess (deficiency) of cash available over disbursements for November will be: A. $(11,700) B. $ (29,700) C. $60,300 D. $72,000 1. 2. The amount of cash needed to be borrowed on November 1 to cover all cash disbursements and to obtain the desired November 30 cash balance is: A. $11,700 B. $18,000 C. $29,700 D. $30,000 The minimum cash balance the Lowville Company should have in order to make both repayment and interest payment in December should be closest to: A. $18,060 B. $29,800 C. $90,600 D. $119,800
(a) For the current year, Encor Ltd. had net sales of $450,000 and paid $260,000 for the cost of goods sold. They had average receivables of $130,000, average payables of $57,000, and an average inventory of $90,000. Calculate the Operating cycle and Cash cycle for Encor Ltd. Interpret the results. (b) Prepare a Cash Budget based on the info below for the year 2020 for the months of January, February, March, and April. - Encor Ltd., anticipates sales of $18,000 in January 2020, with anticipated growth of 10% per month; - Credit sales are paid 50% the same month and 50% the following month (credit sales for December 2019 was $14,000) - Credit purchases are paid 35% of sales; paid in the month they are incurred - Wages and expenses are 30% of sales every month; paid in the month they are incurred - In February, the company pays $27,000 cash for new equipment - The beginning cash balance is $13,000
Kayak Co. 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 $528,000 409, 000 452,000 Cash payments $470,400 January February 351,400 March 534,000 According to a credit agreement with its bank, Kayak requires a minimum cash balance of $40,000 at each month-end. In return, the bank has agreed that the company can borrow up to $150,000 at a monthly interest rate of 1%, paid on the last day of each month. The interest is computed based on the beginning balance of the loan for the month. The company repays loan principal with any cash in excess of $40,000 on the last day of each month. 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. (Negative balances and Loan repayment amounts (if any) should be indicated with minus…
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Kayak Co. 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. CashReceipts Cashpayments January $ 516,000 $ 461,700 February 403,000 348,700 March 451,000 530,000 According to a credit agreement with its bank, Kayak requires a minimum cash balance of $40,000 at each month-end. In return, the bank has agreed that the company can borrow up to $150,000 at a monthly interest rate of 1%, paid on the last day of each month. The interest is computed based on the beginning balance of the loan for the month. The company repays loan principal with any cash in excess of $40,000 on the last day of each month. 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. (Negative balances and Loan repayment amounts…
Kayak Co. budgeted the following cash recelpts (excluding cash recelpts from loans recelved) and cash payments (excluding cash payments for loan principal and Interest payments) for the first three months of next year. Cash Cash Receipts $519,eee payments $464,7ee 358, 208 524, еее January February 412,5ee March 464,eee According to a credlt agreement with Its bank, Kayak requires a minimum cash balance of $40,000 at each month-end. In return, the bank has agreed that the company can borrow up to $140,000 at a monthly Interest rate of 1% , pald on the last day of each month. The interest is computed based on the beginning balance of the loan for the month. The company repays loan principal with any cash In excess of $40,000 on the last day of each month. 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. (Negative balances and Loan repayment amounts (If any) should be indicated wlth minus…
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Kayak Co. 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 Cash Receipts $528,000 payments $470,400 351,400 534,000 January February 409,000 March 452,000 According to a credit agreement with its bank, Kayak requires a minimum cash balance of $40,000 at each month-end. In return, the bank has agreed that the company can borrow up to $150,000 at a monthly interest rate of 1%, paid on the last day of each month. The interest is computed based on the beginning balance of the loan for the month. The company repays loan principal with any cash in excess of $40,000 on the last day of each month. 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. (Negative balances and Loan repayment amounts (if any) should be indicated with minus…
What is the budgeted cash receipts value from customers during the year?