ZuoTi.Pro
Question

Linden company's goal is to have an ending cash balance each month of $100,000. For October,...

Linden company's goal is to have an ending cash balance each month of $100,000. For October, you had to borrow $14,000 to meet this goal. For the current month (November), you have a net cash flow of-$28,000. What is your cumulative borrowing for October and November given Linden's company's goal? Enter your answer accurate to the nearest dollar)

business   finance   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Cumulative borrowing = Borrwoing in October + Borrowing in November

Borrwoing in October = $14,000

Borrowing in November = Cash balance at the end of November - net cash flow in November

Borrowing in November = 100,000 - (-28,000)

Borrowing in November = $128,000

Cumulative borrowing = 14,000 + 128,000

Cumulative borrowing = $142,000

Can you please upvote? Thank You :-)

0 0
Add a comment
Know the answer?
Add Answer to:
Linden company's goal is to have an ending cash balance each month of $100,000. For October,...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Graham Potato Company has projected sales of $10,800 in September, $14,000 in October, $20,800 in November,...

    Graham Potato Company has projected sales of $10,800 in September, $14,000 in October, $20,800 in November, and $16,800 in December. Of the company's sales, 30 percent are paid for by cash and 70 percent are sold on credit. Experience shows that 40 percent of accounts receivable are paid in the month after the sale, while the remaining 60 percent are paid two months after. Determine collections for November and December. Also assume Graham's cash payments for November and December are...

  • Check my work Foyert Corp. requires a minimum $7.700 cash balance. If necessary, loans are taken...

    Check my work Foyert Corp. requires a minimum $7.700 cash balance. If necessary, loans are taken to meet this requirement at a cost of 2% interest per month (paid monthly). Any excess cash is used to repay loans at month-end. The cash balance on October 1 is $7.700 and the company has an outstanding loan of $3,700. Forecasted cash receipts (other than for loans received) and forecasted cash payments (other than for loan or interest payments) follow. Cash receipts Cash...

  • Crane Company is preparing a cash summary budget using the data below. They have already prepared their cash receipts an...

    Crane Company is preparing a cash summary budget using the data below. They have already prepared their cash receipts and cash payments budget so that data is provided: October November Beginning Cash Balance $16000 Expected Cash Receipts $63000 $95000 Expected Cash Payments $45000 $76000 Management always wants to maintain a $41,196 minimum cash balance at the end of every month. If there is an expected cash shortfall in the budget they will be proactive and borrow money at the first...

  • Foyert Corp. requires a minimum $6,300 cash balance. If necessary, loans are taken to meet this...

    Foyert Corp. requires a minimum $6,300 cash balance. If necessary, loans are taken to meet this requirement at a cost of 2% interest per month (paid monthly). Any excess cash is used to repay loans at month-end. The cash balance on October 1 is $6,300 and the company has an outstanding loan of $2,300. Forecasted cash receipts (other than for loans received) and forecasted cash payments (other than for loan or interest payments) follow. Cash receipts Cash payments October $22,300...

  • Crane Company is preparing a cash summary budget using the data below. They have already prepared...

    Crane Company is preparing a cash summary budget using the data below. They have already prepared their cash receipts and cash payments budget so that data is provided: November October Beginning Cash Balance $16000 Expected Cash Receipts $95000 $63000 Expected Cash Payments $45000 $76000 Management always wants to maintain a $39,637 minimum cash balance at the end of every month. If there is an expected cash shortfall in the budget they will be proactive and borrow money at the first...

  • Crane Company is preparing a cash summary budget using the data below. They have already prepared...

    Crane Company is preparing a cash summary budget using the data below. They have already prepared their cash receipts and cash payments budget so that data is provided: October November Beginning Cash Balance $16000 Expected Cash Receipts $63000 $95000 Expected Cash Payments $45000 $76000 Management always wants to maintain a $38,593 minimum cash balance at the end of every month. If there is an expected cash shortfall in the budget they will be proactive and borrow money at the first...

  • Crane Company is preparing a cash summary budget using the data below. They have already prepared...

    Crane Company is preparing a cash summary budget using the data below. They have already prepared their cash receipts and cash payments budget so that data is provided: October November Beginning Cash Balance $16000 Expected Cash Receipts $63000 $95000 Expected Cash Payments $45000 $76000 Management always wants to maintain a $41,920 minimum cash balance at the end of every month. If there is an expected cash shortfall in the budget they will be proactive and borrow money at the first...

  • Crane Company is preparing a cash summary budget using the data below. They have already prepared...

    Crane Company is preparing a cash summary budget using the data below. They have already prepared their cash receipts and cash payments budget so that data is provided: October November Beginning Cash Balance $16000 Expected Cash Receipts $63000 $95000 Expected Cash Payments $45000 $76000 Management always wants to maintain a $38,714 minimum cash balance at the end of every month. If there is an expected cash shortfall in the budget they will be proactive and borrow money at the first...

  • oyert Corp. requires a minimum $6,800 cash balance. Loans taken to meet this requirement cost 1%...

    oyert Corp. requires a minimum $6,800 cash balance. Loans taken to meet this requirement cost 1% interest per month (paid monthly). Any excess cash is used to repay loans at month-end. The cash balance on October 1 is $6,800 and the company has an outstanding loan of $2,800. Forecasted cash receipts (other than for loans received) and forecasted cash payments (other than for oan or interest payments) follow. Cash receipts Cash payments October $22,880 25,200 November $16,899 15,899 December $20,800...

  • Check my work Graham Potato Company has projected sales of $15,600 in September. $18,000 in October,...

    Check my work Graham Potato Company has projected sales of $15,600 in September. $18,000 in October, $25,600 in November, and $21,600 in December. Of the company's sales, 25 percent are paid for by cash and 75 percent are sold on credit. Experience shows that 40 percent of accounts receivable are paid in the month after the sale, while the remaining 60 percent are paid two months after. Determine collections for November and December points Also assume Graham's cash payments for...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
Active Questions
ADVERTISEMENT