Select the correct choice that contains the values that will complete the cash flow of funds for the month of January. The correct answer will have the right values in sequential order for "cash difference", "borrow this period", and "ending cash balance". • The farm does not have a beginning balance for their operating loan. • If they do borrow, the interest cost is 1% per month. You will not have an interest expense in the first month since any borrowed fund will not accrue interest until the next month. • They want to keep a minimum cash balance of $5,000 at the end of each month. • If the farm runs a negative cash balance, funds must be borrowed to maintain the minimum $5,000 cash balance at the end of the month. Flow-of-Funds Summary for January Beginning cash balance Total cash receipts Total cash out flow Cash difference Borrowing this period Payment on operating loan Principal Interest Ending cash balance 방방 $0 $0 ? $12,000 $125,000 $160,000 ? c. ?
Select the correct choice that contains the values that will complete the cash flow of funds for the month of January. The correct answer will have the right values in sequential order for "cash difference", "borrow this period", and "ending cash balance". • The farm does not have a beginning balance for their operating loan. • If they do borrow, the interest cost is 1% per month. You will not have an interest expense in the first month since any borrowed fund will not accrue interest until the next month. • They want to keep a minimum cash balance of $5,000 at the end of each month. • If the farm runs a negative cash balance, funds must be borrowed to maintain the minimum $5,000 cash balance at the end of the month. Flow-of-Funds Summary for January Beginning cash balance Total cash receipts Total cash out flow Cash difference Borrowing this period Payment on operating loan Principal Interest Ending cash balance 방방 $0 $0 ? $12,000 $125,000 $160,000 ? c. ?
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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Transcribed Image Text:Select the correct choice that contains the values that will complete the cash
flow of funds for the month of January. The correct answer will have the right
values in sequential order for "cash difference", "borrow this period", and
"ending cash balance".
• The farm does not have a beginning balance for their operating loan.
• If they do borrow, the interest cost is 1% per month. You will not have an
interest expense in the first month since any borrowed fund will not
accrue interest until the next month.
• They want to keep a minimum cash balance of $5,000 at the end of each
month.
• If the farm runs a negative cash balance, funds must be borrowed to
maintain the minimum $5,000 cash balance at the end of the month.
Flow-of-Funds Summary for January
Beginning cash balance
Total cash receipts
Total cash out flow
Cash difference
Borrowing this period
Payment on operating loan
Principal
Interest
Ending cash balance
방방
$0
$0
?
$12,000
$125,000
$160,000
?
c.
?
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