E9-27. Cash Budget & Short-Term Financing Presented are partial October, Novembe
ID: 2342446 • Letter: E
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E9-27. Cash Budget & Short-Term Financing
Presented are partial October, November, and December cash budgets for Holiday Events:
PLEASE SHOW YOUR WORK IN EXCEL WITH THE FORMULAS SHOWING.
Cash Budget & Short-Term Financing Presented are partial October, November, and December cash budgets for Holiday Events: 0.27, E9-27 HOLIDAY EVENTS Partial Cash Budgets For the Months of October, November, and December October November December Total ons . (50,000) (60,000) (40,000) ? Ending cash before borrowings or replacements Repayments.. 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. Required Complete the short-term financing section of the cash budget.Explanation / Answer
HOLIDAY EVENTS
Partial Cash Budget
For the month of October, November and December
October
November
December
Total
Cash balance ,Beginning
$ 23,000.00
$ 12,000.00
$ 12,000.00
$ 23,000.00
Collections on sales
$ 35,000.00
$ 40,000.00
$ 80,000.00
$ 155,000.00
Cash available for operations
$ 58,000.00
$ 52,000.00
$ 92,000.00
$ 178,000.00
Disbursements for Operations
$ (50,000.00)
$ (60,000.00)
$ (40,000.00)
$ (150,000.00)
Ending cash balance before borrowings or replacements
$ 8,000.00
$ (8,000.00)
$ 52,000.00
$ 28,000.00
Short term Finance:
New loan
$ 4,000.00
$ 20,000.00
$ 24,000.00
Repayments
$ 24,280.00
$ 24,280.00
Interest
$ 40.00
$ 240.00
$ 280.00
Cash balance , Ending
$ 12,000.00
$ 12,000.00
$ 27,720.00
$ 27,720.00
Loan Statement
October
November
December
Total
Beginning balance of loan
$ 4,000.00
$ 24,040.00
$ -
New loan
$ 4,000.00
$ 20,000.00
$ 24,000.00
Repayments
$ -
$ -
$ 24,280.00
$ 24,280.00
Interest
$ 40.00*
$ 240.00**
$ 280.00***
Ending Balance of Loan
$ 4,000.00
$ 24,040.00
$ -
$ -
*$40 is interest for November loan.
**Interest on 24000 @1%.
*** Interest will be paid for October and November ($40+240)=$280.
HOLIDAY EVENTS
Partial Cash Budget
For the month of October, November and December
October
November
December
Total
Cash balance ,Beginning
$ 23,000.00
$ 12,000.00
$ 12,000.00
$ 23,000.00
Collections on sales
$ 35,000.00
$ 40,000.00
$ 80,000.00
$ 155,000.00
Cash available for operations
$ 58,000.00
$ 52,000.00
$ 92,000.00
$ 178,000.00
Disbursements for Operations
$ (50,000.00)
$ (60,000.00)
$ (40,000.00)
$ (150,000.00)
Ending cash balance before borrowings or replacements
$ 8,000.00
$ (8,000.00)
$ 52,000.00
$ 28,000.00
Short term Finance:
New loan
$ 4,000.00
$ 20,000.00
$ 24,000.00
Repayments
$ 24,280.00
$ 24,280.00
Interest
$ 40.00
$ 240.00
$ 280.00
Cash balance , Ending
$ 12,000.00
$ 12,000.00
$ 27,720.00
$ 27,720.00
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