Eren Retail Company was recently created with a beginning cash balance of P12,000. The owner expects the following for the first month of operations: Cash sales to customers.. P8,000 Sales on account to customers.. P30,000 Cash collected from account customers.. P12,000 Cost of merchandise purchased.. Cash paid for merchandise purchased.. Cost of merchandise sold.. P35,000 P24,500 P26,600 Cash paid for display cases. Selling and administrative expenses.. P9,600 P4,000 The display cases above were purchased at the beginning of the month and are being depreciated at a rate of P200 per month. This amount is included in the selling and administrative expenses figure above. All other selling and administrative expenses are paid as incurred. Eren wants to maintain a cash balance of P10,000. Any amount below this can be borrowed from a local bank as needed in increments of P1,000. All borrowings are made at month end. In Eren's cash budget for this first month, how much money will Eren need to borrow at month end?

Eren Retail Company was recently created with a beginning cash balance of P12,000. The owner expects the following for the first month of operations: Cash sales to customers.. P8,000 Sales on account to customers.. P30,000 Cash collected from account customers.. P12,000 Cost of merchandise purchased.. Cash paid for merchandise purchased.. Cost of merchandise sold.. P35,000 P24,500 P26,600 Cash paid for display cases. Selling and administrative expenses.. P9,600 P4,000 The display cases above were purchased at the beginning of the month and are being depreciated at a rate of P200 per month. This amount is included in the selling and administrative expenses figure above. All other selling and administrative expenses are paid as incurred. Eren wants to maintain a cash balance of P10,000. Any amount below this can be borrowed from a local bank as needed in increments of P1,000. All borrowings are made at month end. In Eren's cash budget for this first month, how much money will Eren need to borrow at month end?

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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