Question

R elook & Print Qution 4 Marked out of 1.00 Not complete F Rag question Cash Budget & Short-Term Financing Presented below are partial October, November, and December cash budgets for Holidays Events Loans are obtained in increments of $1,000 at the start of each month to maintain a minimum end of month balance of $12,000. Interest is one percent simple interest (no compounding) per month, payable when the loan is repaid. Repayments are made as soon as possible, subject to the minimum end-of-month balance Complete the short-term financing section of the cash budget and all missing figures. Use a negative sign with answers to indicate a cash dsbursement HOLIDAY EVENTS Partial Cash Budgets For the Manths of October, November, and December October November December Tatal 125000 Cash balance, begnning 37.000 42,000 12.000 Colection on sales Cash available for operations Disbursements for operations Ending cash before bornowings or replacerments Shot-serm ance (0000 (52,000) 62,000 0 0 0 New loans Repaymenes interest Cash balance, ending 0 0 0 s os

Answer 1

Cash Budget Particulars Opening cash Cash Receipts Total cash available Cash payments Net cash Finance Borrow Repayment Interest paid Closing Cash October November December Total $ 25,000 $ 12,000 $ 12,000 | $ 25,000 $ 37,000 $ 42,000 $ 82,000 $ 161,000 | $ 62,000 $ 54,000 | $ 94,000 $ 186,000 $(52,000) $ (62,000) $ (40,000) $(154,000) $ 10,000 $ (8,000) $ 54,000 $ 32,000 | $ 2,000 $ 20,000 $ 22,000 $(22,000) $ (22,000) $ (240) $ (240) $ 12,000 $ 12,000 $ 31,760 $ 31,760 Interest = ( 2000 * 1% * 2) + (20000 * 1%) = $ 240