Question

eBook Question 4 Not complete Maried out of 100 p g 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 disbursement HOLIDAY EVENTS Partial Cash Budgets For the Months of October, November, and December October November December Total Cash balance, beginning $25,000 $ OS OS 0 Collection on sales 37,000 42.000 82.000 Cash available for operations 0 0 Disbursements for operations (52,000) (62.000) Ending cash before borrowings or replac Short-term finance New loans Repayments Interest Cash balance, endi 0$ 0$ OOOOOOOOO Check

Answer 1

Cash Budget November December Total October Particulars Opening cash Cash Receipts Total cash available Cash payments Net cash Finance Borrow Repayment Interest paid Closing Cash $ 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) $31,760$ 31,760 (240) $ 12,000 12,000 Interest (2000* 1% * 2) (20000* 1%) $ 240