Question

17 Copland Supplies' retained earnings balans interest and income tax when answering this question ca camings balance at the end of A $259,000 $218,000 D $244.000 None of the above $64,000 th e Assume the company pays to 18 In addition to the information given a addition to the information given above, assume Copland Supplies requires $30,000 minimum cash balance sn can be borrowed at any exact amount at the beginning of each month from company's credit line at a local bank. Interest, 2% monthly, are paid at the end of each month. Determine total amount of cash Copland Supplies needs to borrow from the bank for the month October A. $68,715 B. $38,715 C. $30,000 D. $70,118 E. None of the above

Answer 1

The answer has been presented in the supporting sheet. All the parts has been solved with detailed explanation and format. For detailed answer refer to the supporting sheet.

1 Answer 2 Part 16) The correct answer is A) $ 104000 3 4 5 Calculation and explanation 6 Account receivable balance on November 30 november sales 40% 260000 40 % 7 8 $104000 9 10 Part 17) 11 The correct answer is D) $ 244000 12 13 Retained earning balance on 30 November Opening retained earnings + net income-dividend declared 14 Opening retained earnings +(sales- cogs - bad debts-selling expenses - depreciation) -dividend declared 15 180000+ (350000+260000-(65%*(350000+260000)) (5%*(350000+260000)) - (32000*2)-(20000*2)-15000 16 $ 244000

18 Part 18) 19 The correct answer is D) $ 70118 20 Cash Budget For October 21 Opening cash balance 25000 22 Cash Receipt from october sales (350000*55%) 192500 23 From account Receivables 70000 24 Total cash available 287500 25 Cash Payment 26 To Supplier (207025 *60%) 27 For account payables 28 For selling expenses 29 Total Cash Payment 124215 170000 32000 326215 30 B1 Defeciency -38715 32 33 Financing ((38715+30000) /98%) 34 Interest paid 35 70118 1403 36 Net Financing inflow 68715 7 38 Closing cash balance 30000 39 40 Purchases for october desired ending inventory cogs-beginning inventory 41 (260000*65%*35%) + (350000*65%) - 79625 42 $207025