The beginning cash balance is $18,000. Sales are forecasted at $860,000 of which 80% will be on account. Seventy percent of credit sales are expected to be collected in the year of sale. Cash expenditures for the year are forecasted at $475,000. Accounts Receivable from previous accounting periods totaling $11,300 will be collected in the current year. The company is required to make a $14,000 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 $95,000, and the annual interest rate is 8%.
The beginning cash balance is $18,000. Sales are forecasted at $860,000 of which 80% will be on account. Seventy percent of credit sales are expected to be collected in the year of sale. Cash expenditures for the year are forecasted at $475,000. Accounts Receivable from previous accounting periods totaling $11,300 will be collected in the current year. The company is required to make a $14,000 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 $95,000, and the annual interest rate is 8%.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![The beginning cash balance is $18,000. Sales are forecasted at $860,000 of which 80% will be on account. Seventy percent of credit
sales are expected to be collected in the year of sale. Cash expenditures for the year are forecasted at $475,000. Accounts Receivable
from previous accounting periods totaling $11,300 will be collected in the current year. The company is required to make a $14,000
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 $95,000,
and the annual interest rate is 8%.
Compute the excess of available cash over cash disbursements.
Excess of available cash over cash disbursements
$](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd17b9706-e9c9-4374-9367-0a496aa440c1%2Fee67c98b-c7b0-42f8-9d5c-71a1cc9df4b4%2Ftpdbjq6_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The beginning cash balance is $18,000. Sales are forecasted at $860,000 of which 80% will be on account. Seventy percent of credit
sales are expected to be collected in the year of sale. Cash expenditures for the year are forecasted at $475,000. Accounts Receivable
from previous accounting periods totaling $11,300 will be collected in the current year. The company is required to make a $14,000
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 $95,000,
and the annual interest rate is 8%.
Compute the excess of available cash over cash disbursements.
Excess of available cash over cash disbursements
$
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