1. Please use the following information to develop a cash budget for January and February: January...
1. Please use the following information to develop a cash budget for January and February:
January February
Beginning balance of cash $ 25,000 ?
Cash collections from customers 150,000 200,000
Cash payments 205,000 110,000
Minimum cash balance at end of each month $20,000
Money is assumed to be borrowed at the beginning of any month when it is needed and paid back at the end of any month when it can be paid back. Interest is paid in the month when the amount borrowed is repaid. Interest rate is 18% per year.
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1. Please use the following information to develop a cash budget
for January and February:
January...
4. Cash Budget (20 points) The following information pertains to Monroe Company: Month December January February...
4. Cash Budget (20 points) The following information pertains to Monroe Company: Month December January February March Sales $130,000 $68,000 $87,000 $106,000 Purchases $65,000 $35,000 $46,000 $48,000 • Cash is collected from customers in the following manner: o Month of sale 30% o Month following the sale 65% o Written off as uncollectible 5% 45% of purchases are paid for in cash in the month of purchase, and the balance is paid the following month. Labor costs are 20% of...
4. Cash Budget (20 points) The following information pertains to Monroe Company: Month December January February...
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Derby Company prepares monthly cash budgets. Relevant data from operating budgets for 2017 are: January February...
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CARLA VISTA COMPANY Cash Budget January February Beginning cash balance 60650 Add : Cash receipts Collections...
CARLA VISTA COMPANY Cash Budget January February Beginning cash balance 60650 Add : Cash receipts Collections from customers 85650 160650 Sale of short-term investments 12610 Click if you would like to Show Work for this question: Open Show Work Exercise 7-14 Carla Vista Company expects to have a cash balance of $60,650 on January 1, 2017. These are the relevant monthly budget data for the first two months of 2017. 1. Collections from customers: January $85,650, February $160,650. 2. Payments...
A) Prepare Drew Consulting's cash budget for January AND February B) How much cash will Drew...
A) Prepare Drew Consulting's cash budget for January
AND February
B) How much cash will Drew borrow in February if cash receipts
from customers that month total $39,000 instead of $49,000
Assume Drew Consulting began January with $15,000 cash. Management forecasts that cash receipts from credit customers will be $48,000 in January and $49,000 in February. Projected cash payments include equipment purchases ($18,000 in January and $41,000 in February) and selling and administrative expenses ($3,000 each month). Drew's bank requires...
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Vernon Medical Clinic has budgeted the following cash flows. January $117,000 February $123,000 March $143,000 Cash...
Vernon Medical Clinic has budgeted the following cash flows. January $117,000 February $123,000 March $143,000 Cash receipts Cash payments For inventory purchases For S&A expenses 98,500 39,500 80,500 40,500 93,500 35,500 Vernon Medical had a cash balance of $16,500 on January 1. The company desires to maintain a cash cushion of $10,000. Funds are assumed to be borrowed, in increments of $1,000, and repaid on the last day of each month; the interest rate is 3 percent per month. Repayments...
4. Cash Budget (20 points) The following information pertains to Monroe Company: Month December January February March Sales $130,000 $68,000 $87,000 $106,000 Purchases $65,000 $35,000 $46,000 $48,000 • Cash is collected from customers in the following manner: o Month of sale 30% o Month following the sale 65% o Written off as uncollectible 5% 45% of purchases are paid for in cash in the month of purchase, and the balance is paid the following month. Labor costs are 20% of...
4. Cash Budget (20 points) The following information pertains to Monroe Company: Month December January February March Sales Purchases $130,000 $65,000 $68,000 $35,000 $87,000 $46,000 $106,000 $48,000 Cash is collected from customers in the following manner: Month of sale 30% Month following the sale 65% Written off as uncollectible 5% .45% of purchases are paid for in cash in the month of purchase, and the balance is paid the following month. Labor costs are 20% of sales. Other operating costs...
CARLA VISTA COMPANY Cash Budget January February Beginning cash balance 60650 Add : Cash receipts Collections from customers 85650 160650 Sale of short-term investments 12610 Click if you would like to Show Work for this question: Open Show Work Exercise 7-14 Carla Vista Company expects to have a cash balance of $60,650 on January 1, 2017. These are the relevant monthly budget data for the first two months of 2017. 1. Collections from customers: January $85,650, February $160,650. 2. Payments...
A) Prepare Drew Consulting's cash budget for January
AND February
B) How much cash will Drew borrow in February if cash receipts
from customers that month total $39,000 instead of $49,000
Assume Drew Consulting began January with $15,000 cash. Management forecasts that cash receipts from credit customers will be $48,000 in January and $49,000 in February. Projected cash payments include equipment purchases ($18,000 in January and $41,000 in February) and selling and administrative expenses ($3,000 each month). Drew's bank requires...
Baird Medical Clinic has budgeted the following cash flows: January $102,000 February $108,000 March $128,000 Cash receipts Cash payments For inventory purchases For S&A expenses 91,000 32,000 73,000 33,000 86,000 28,000 Baird Medical had a cash balance of $9,000 on January 1. The company desires to maintain a cash cushion of $7,000. Funds are assumed to be borrowed, in increments of $1,000, and repaid on the last day of each month; the interest rate is 3 percent per month. Repayments...
Fayette Medical Clinic has budgeted the following cash flows: January $ 240,000 February $232,000 March $272,000 Cash receipts Cash payments For inventory purchases For S&A expenses 220,000 62,000 164,000 64,000 190,000 54,000 Fayette Medical had a cash balance of $16,000 on January 1. The company desires to maintain a cash cushion of $10,000. Funds are assumed to be borrowed, in increments of $2,000, and repaid on the last day of each month; the interest rate is 1 percent per month....
Vernon Medical Clinic has budgeted the following cash flows. January $117,000 February $123,000 March $143,000 Cash receipts Cash payments For inventory purchases For S&A expenses 98,500 39,500 80,500 40,500 93,500 35,500 Vernon Medical had a cash balance of $16,500 on January 1. The company desires to maintain a cash cushion of $10,000. Funds are assumed to be borrowed, in increments of $1,000, and repaid on the last day of each month; the interest rate is 3 percent per month. Repayments...
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