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a Connet Chapter 7 Guiz Help Seve& Ei Suamit ce budgeted the following cash rece

ID: 2569869 • Letter: A

Question

a Connet Chapter 7 Guiz Help Seve& Ei Suamit ce budgeted the following cash receipts (excluding cash receges tom ioans receved and cash payments (escuing eash paymenes for loan principal and interest payments) for the first theee months of next year Receipts payments 525,600 $470,70e anuary February 41 54,800 524,89 According to a credit agreemens with the company's bank, Kayak promises to have a minimum cash balance of $30.000 at each month-end. in ast day of each moneh The interest is computed principal with any cash in excess of $30,000 an the last day of each month The compeny has a cesh that the company can borrow up to St50 000 at a monthly interest rabe of ts paid on the balance of $30,000 and a loan besed on the beginning balance of the loan for the month The company repays loen balance of $60,000 an Jenuary 1 Prepare monthiy cash budgess for January. Februery, and March (Negative indicated with minus sign) balances and Lean repayment amounts (if any) should Cash Budget For January. February, and March ash paryments Prev 10, 5 Next> Type hene to search ,, PrtScn., Home " End" pgUp 0

Explanation / Answer

January

February

march

beginning cash balance

30000

30000

77937

cash receipts

525000

410500

454000

total cash available

555000

440500

531937

cash payments

470700

356200

524000

interest expense

600

63

0

preliminary cash balance

83700

84237

7937

repayment of loan or additional loan

-53700

-6300

22063

ending cash balance

30000

77937

30000

loan balance

beginning balance loan account

60000

6300

0

repayment or additional loan

-53700

-6300

22063

loan balance- end of month

6300

0

22063

January

February

march

beginning cash balance

30000

30000

77937

cash receipts

525000

410500

454000

total cash available

555000

440500

531937

cash payments

470700

356200

524000

interest expense

600

63

0

preliminary cash balance

83700

84237

7937

repayment of loan or additional loan

-53700

-6300

22063

ending cash balance

30000

77937

30000

loan balance

beginning balance loan account

60000

6300

0

repayment or additional loan

-53700

-6300

22063

loan balance- end of month

6300

0

22063

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