General accounting question Summit Industries has a cash balance of $25,000 on July1. The company must maintain a minimum cash balanceof $20,000. During July, expected cash receipts are$95,000, and cash disbursements are expected to total$112,000. Ignoring interest payments, how much willSummit Industries need to borrow in July to maintain itsminimum cash balance? provide definition given data andall calculation with all formula With $sine and finalanswer and other incorrect option explanation

Step 1: Definition of Cash Borrowing RequirementThe cash borrowing requirement refers to the amount…

Answered: Summit Industries has a cash balance of…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 10EB: Starlight Enterprises has net credit sales for 2019 in the amount of $2,600,325, beginning accounts...

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GigaTech Corporation has a cash balance of $22,500 on June 1. The company must maintain a minimum cash balance of $20,000. During June, expected cash receipts are $75,000. Cash disbursements during the month are expected to total $90,000. Ignoring interest payments, during June the company will need to borrow: ⚫ a. $12,500 ⚫ b. $10,500 ⚫ c. $15,000 • $13.000
Garden Gate, Inc. reported the following data in its August 31 annual report. Cash and cash equivalents $ 485,625 Cash flow from operations (630,000) Required: a. What is the company's "cash burn" per month? per month b. What is the company's ratio of cash to monthly cash expenses? Round your answer to one decimal place. months
Sparks Corporation has a cash balance of $18,900 on April 1. The company must maintain a minimum cash balance of $15,500. During April, expected cash receipts are $67.000. Cash disbursements during the month are expected to total $80.500. Ignoring interest payments, during April the company will need to borrow: Multiple Cholce O $10:100 $5.400 $13.500 $15.500
Sparks Corporation has a cash balance of $14,100 on April 1. The company must maintain a minimum cash balance of $16,500. During April, expected cash receipts are $59,000. Cash disbursements during the month are expected to total $68,500. Ignoring interest payments, during April the company will need to borrow: O 11,900 O 56,600 4,600 9,500
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Karim Corp. requires a minimum $9,000 cash balance. Loans taken to meet this requirement cost 1% interest per month (paid monthly). Any excess cash is used to repay loans at month-end. The cash balance on July 1 is $9,400, and the company has no outstanding loans. Forecasted cash receipts (other than for loans received) and forecasted cash payments (other than for loan or interest payments) follow. July August September Cash receipts $ 25,000 $ 33,000 $ 41,000 Cash payments 29,500 31,000 33,000 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.) KARIM CORP. Cash Budget For July, August, and September July August September Beginning cash balance $9,400 Total cash available Preliminary cash balance Ending cash…
At the beginning of the year, Oriole Company has a cash balance of $25300. During the year, the company expects cash disbursements of $176000, and cash receipts of $154000. If Oriole Company requires an ending cash balance of $22000, how much must the company borrow? O $0. O $44000. O $18700. O $22000.
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Below is a cash flow projection on a sequential-pay CMO, which has four tranches, A through D. Assume the four tranches get paid in the order of A->B->C->D. In this month tranche A has an outstanding balance of 84,000 and B has an outstanding balance of 36,000. What is the principal payment towards tranche B in this month? Enter your answer in thousands of dollars, with no decimals. For example, if your answer is $40,000, then enter 40. month 39 beginning balance $599,000 scheduled principal payment $25,000 Prepayment $18,000 Interest to MBS investors $51,000
If Service World has $1,950 cash, $400 of government Treasury bills purchased last month with a six-week maturity, and $940 of cash set aside for legal reasons, how much will the company report on the balance sheet as “Cash and Cash Equivalents”?

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