how do i solve the last few boxes? Haas borrows funds, in increments of $1,000,

Question

how do i solve the last few boxes?

Haas borrows funds, in increments of $1,000, and repays them on the last day of the month. Repayments may be made in any amount available. The company also pays its vendors on the last day of the month. It pays interest of 2 percent per month in cash on the last day of the month. To be prudent, the company desires to maintain a $31,000 cash cushion. Prepare a cash budget. (Any repayments/shortage which should be indicated with a minus sign. Round your answers to the nearest dollar amount.)

Explanation / Answer

Cash Budget October November December Beginning Cash Balance                          -              31,940                    31,000 Plus: Cash receipts               180,000          436,000                 523,200 Cash available               180,000          467,940                 554,200 Less: Payments For Inventory Purchases               277,760          348,992                 339,056 For selling and administrative expenses                 37,700            58,600                    63,720 Purchase of stores fixtures               180,600                     -                               -   Interest Expense                          -                6,960                      6,512 Total budgeted payments               496,060          414,552                 409,288 Payment minus receipts Surplus (shortage)            (316,060)            53,388                 144,912 Financing activity Borrowing (repayment)               348,000          (22,388)               (113,912) Closing Cash Balance                 31,940            31,000                    31,000

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