Western Company is preparing a cash budget for June. The company has $10,300 in cash at the beginning of June and anticipates $31,700 in cash receipts and $37,900 in cash payments during June. Western Company has an agreement with its bank to maintain a minimum cash balance of $10,000. As of May 31, the company has no loans outstanding. To maintain the $10,000 required balance, during June the company must: Multiple Choice Repay $4,100. Borrow $10,00. Borrow $5,900. Borrow $6,200. Repay $5,900.

Western Company is preparing a cash budget for June. The company has $10,300 in cash at the beginning of June and anticipates $31,700 in cash receipts and $37,900 in cash payments during June. Western Company has an agreement with its bank to maintain a minimum cash balance of $10,000. As of May 31, the company has no loans outstanding. To maintain the $10,000 required balance, during June the company must: Multiple Choice Repay $4,100. Borrow $10,00. Borrow $5,900. Borrow $6,200. Repay $5,900.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Peach Corporation's only cash receipts are those derived from customer sales. Peach makes both cash sales and sales on account. For its credit sales, Peach collects 50% in the month of the sale, 40% in the month following the sale, and 10% in the second month following the sale. Peach is preparing its cash budget for the upcoming year. Sales on account for the month of March are budgeted at $150,000. The budgeted accounts receivable balance on March 1 is $113,000, of which $90,000 represents uncollected sales made in February and $23,000 represents uncollected sales made in January. If Peach's total cash receipts for the month of March are budgeted at $205,000, what are Peach's budgeted cash sales during March? O $17,000 O $35,000 $53,000 $71,000 O None of the above
Motors Corporation manufactures motors for dirt bikes. The company requires a minimum $30,000 cash balance at each month-end. If necessary, the company borrows to meet this requirement at a cost of 3% interest per month (paid at the end of each month). Any preliminary cash balance above $30,000 at month-end is used to repay loans. The cash balance on July 1 is $43,000, and the company has no outstanding loans. Budgeted cash receipts and budgeted cash payments (other than for interest on the loan and loan activity) follow. July Cash receipts Cash payments $ 94,000 122,000 August September $120,000 108,900 $ 159,000 136,400 Prepare a cash budget for July, August, and September. Note: Negative balances and Loan repayment amounts (if any) should be indicated with minus sign. Round your final answers to the nearest whole dollar. Answer is not complete. MOTORS CORPORATION Cash Budget July August September Beginning cash balance $ 43,000 $ 30,000 $ 30,000 Add: Cash receipts 94,000 120,000…
Squad raincoats preparing a cash budget for June. It has P25,000 cash at the beginning of June and anticipates P95,000 in cash receipts and 111,290 in cash disbursements during June. It has no loans outstanding on June 1. Compute the amount it must borrow, if any, to maintain a P20,000 cash balance.
Dog
Western Company is preparing a cash budget for June. The company has $10,400 in cash at the beginning of June and anticipates $31,600 in cash receipts and $37,700 in cash payments during June. Western Company has an agreement with its bank to maintain a minimum cash balance of $10,000. As of May 31, the company has no loans outstanding. To maintain the $10,000 required balance, during June the company must:
Please do not give solution in image format ?
The budget director of Heathers Florist has prepared the following sales budget. The company had $ 121,600 in accounts receivable on July 1. Heathers Florist normally collects 100 percent of accounts receivable in the month following the month of sale.Required Complete the schedule of cash receipts by filling in the missing amounts.Determine the amount of accounts receivable the company will report on its third quarter pro forma balance sheet.
A Company is preparing a cash budget for June The company has $83,750 cash at the beginning of June and anticipates $102,930 in cash receipts and $116,870 in cash disbursements during June. This company has an agreement with its bank to maintain a cash balance of at least $81 250. As of May 31. the company owes $30,000 to the bank To maintain the $81.250 required balance, during June the company must O Borrow $11 440 O Repay $13,940 O Borrow $30 000 Repay $30,000 O Repay $11,440
Foyert Corporation requires a minimum $7,000 cash balance. Loans taken to meet this requirement cost 1% interest per month (paid at the end of each month). Any preliminary cash balance above $7,000 is used to repay loans at month-end. The cash balance on October 1 is $7,000, and the company has an outstanding loan of $3,000. Budgeted cash receipts (other than for loans received) and budgeted cash payments (other than for loan or interest payments) follow. (please see picture for other info) October November December Cash receipts $ 23,000 $ 17,000 $ 21,000 Cash payments 25,500 16,000 15,000 Prepare a cash budget for October, November, and December.
The budget director of Heather's Florist has prepared the following sales budget. The company had $340,000 in accounts receivabl on July 1. Heather's Florist normally collects 100 percent of accounts receivable in the month following the month of sale. Required a. Complete the schedule of cash receipts by filling in the missing amounts. b. Determine the amount of accounts receivable the company will report on its third quarter pro forma balance sheet. Complete this question by entering your answers in the tabs below. Required A Required B Complete the schedule of cash receipts by filling in the missing amounts. Sales Budget Cash sales Sales on account Total budgeted sales Schedule of Cash Receipts Current cash sales Plus: Collections from accounts receivable Total budgeted collections July August September $ 76,000 $ 67,000 $ 73,000 94,000 101,000 123,600 $170,000 $168,000 $196.600 $416,000 $ 161,000 $ 174,000 Ragu A Required B>
Sunshine Company is ready to begin its third quarter, in which peak sales occur. The company requested a $30,000, 90-day loan from its bank to help meet cash requirements during the quarter. Since Sunshine Company has experienced difficulty in paying off its loans in the past, the loan officer at the bank has asked the company to prepare a cash budget for the quarter. In response to the request the following data has been assembled. On July 1, the beginning of the quarter, the company will have a cash balance of $94,500. The selling price per unit is $50. Actual sales units for the last two months and the budgeted sales for the third quarter follow: May (actual) 8000 units June (actual) 7000 units July (budgeted) 8000 units August (budgeted) 12000 units September (budgeted) 7500 units The company expects to sell 10% of its merchandise for cash. Of sales on account, 60% are expected to be collected in the month of sale and 40% in the month…
Santos Company is preparing a cash budget for February. The company has $15,000 cash at the beginning of February and budgets $72,000 in cash receipts from sales and $105,000 in cash payments during February. Prepare the cash budget for February assuming the company maintains a $5,000 minimum cash balance and will take a loan if necessary to maintain this balance. The company has no loans outstanding on February 1. (Negative cash balances, if any, should be indicated with minus sign.) SANTOS COMPANY Cash Budget Beginning cash balance Total cash available Preliminary cash balance Loan activity Ending cash balance Loan balance, end of month February