The beginning cash balance is $16,500. Sales are forecasted at $820,000 of which 80% will be on account. Seventy percent of credit sales are expected to be collected in the year of sale. Cashexpenditures for the year are forecasted at $472,000. Accounts Receivable from previous accounting periods totaling $11,800 will be collected in the current year. The company is required tomake a $16,500 loan payment and an annual interest payment on the last day of every year. The loan balance as of the beginning of the year is $90,000, and the annual interest rate is 9%.Compute the excess of available cash over cash disbursements.Excess of available cash over cash disbursements$

Detailed explanation: Cash Receipts and Payments : Cash Balance beginning of year $ 16,500Add :…

Answered: The beginning cash balance is $16,500.…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter17: The Management Of Cash And Marketable Securities

Section: Chapter Questions

Problem 2P

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