Motors Corporation manufactures motors for dirt bikes. The company requires a minimum $30,000 cash balance at each month-end. If necessary, the company borrows to meet this requirement at a cost of 3% interest per month (paid at the end of each month). Any preliminary cash balance above $30,000 at month-end is used to repay loans. The cash balance on July 1 is $35,000, and the company has no outstanding loans. Budgeted cash receipts and budgeted cash payments (other than for interest on the loan and loan activity) follow. July August September $ $ $ 86,000 112,000 151,000 114,000 100,900 128,400 Prepare a cash budget for July, August, and September. (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign. Round your final answers to the nearest whole dollar.) Cash receipts Cash payments MOTORS CORPORATION Cash Budget Beginning cash balance Total cash available Total cash payments Preliminary cash balance Additional loan (loan repayment) Ending cash balance Loan activity Loan balance, beginning of Month Additional loan (loan repayment) Loan balance, end of month July $ $ 0 olo 0 0 August September 0 $ $ 0 $ 0 0 OO 0 $ 0 $ 0 $ 0 이이 0 0 0 0 0

Motors Corporation manufactures motors for dirt bikes. The company requires a minimum $30,000 cash balance at each month-end. If necessary, the company borrows to meet this requirement at a cost of 3% interest per month (paid at the end of each month). Any preliminary cash balance above $30,000 at month-end is used to repay loans. The cash balance on July 1 is $35,000, and the company has no outstanding loans. Budgeted cash receipts and budgeted cash payments (other than for interest on the loan and loan activity) follow. July August September $ $ $ 86,000 112,000 151,000 114,000 100,900 128,400 Prepare a cash budget for July, August, and September. (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign. Round your final answers to the nearest whole dollar.) Cash receipts Cash payments MOTORS CORPORATION Cash Budget Beginning cash balance Total cash available Total cash payments Preliminary cash balance Additional loan (loan repayment) Ending cash balance Loan activity Loan balance, beginning of Month Additional loan (loan repayment) Loan balance, end of month July $ $ 0 olo 0 0 August September 0 $ $ 0 $ 0 0 OO 0 $ 0 $ 0 $ 0 이이 0 0 0 0 0

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 14EA: Halifax Shoes has 30% of its sales in cash and the remainder on credit. Of the credit sales, 65% is...

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Motors Corporation manufactures motors for dirt bikes. The company requires a minimum $30,000 cash balance at each month-end. If necessary, the company borrows to meet this requirement at a cost of 3% interest per month (paid at the end of each month). Any preliminary cash balance above $30,000 at month-end is used to repay loans. The cash balance on July 1 is $43,000, and the company has no outstanding loans. Budgeted cash receipts and budgeted cash payments (other than for interest on the loan and loan activity) follow. July Cash receipts Cash payments $ 94,000 122,000 August September $120,000 108,900 $ 159,000 136,400 Prepare a cash budget for July, August, and September. Note: Negative balances and Loan repayment amounts (if any) should be indicated with minus sign. Round your final answers to the nearest whole dollar. Answer is not complete. MOTORS CORPORATION Cash Budget July August September Beginning cash balance $ 43,000 $ 30,000 $ 30,000 Add: Cash receipts 94,000 120,000…
Motors Corporation manufactures motors for dirt bikes. The company reguires a minimum $30,000 cash balance at each month-end. If necessary, the company borrows to meet this requirement at a cost of 3% interest per month (paid at the end of each month). Any preliminary cash balance above $30,000 at month-end is used to repay loans. The cash balance on July 1 is $39,000, and the company has no outstanding loans. Budgeted cash receipts and budgeted cash payments (other than for interest on the loan and loan activity) follow. Cash receipts Cash payments July S 9e, eee 118, e00 August $ 116,000 104, 900 September $ 155,000 132,400 Prepare a cash budget for July, August, and September (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign. Round your final answers to the nearest whole dollar.) MOTORS CORPORATION Cash Budget July August September Total cash available Less: Cash payments for
Motors Corporation manufactures motors for dirt bikes. The company requires a minimum $30,000 cash balance at each month-end. If necessary, the company borrows to meet this requirement at a cost of 2% interest per month (paid at the end of each month). Any preliminary cash balance above $30,000 at month-end is used to repay loans. The cash balance on July 1 is $30,000, and the company has no outstanding loans. Budgeted cash receipts and budgeted cash payments (other than for interest on the loan and loan activity) follow. Cash receipts Cash payments Beginning cash balance July August $ 81,000 $ 107,000 109,000 95,900 Prepare a cash budget for July, August, and September. (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign. Round your final answers to the nearest whole dollar.) Total cash available MOTORS CORPORATION Cash Budget Total cash payments Preliminary cash balance Additional loan (loan repayment) Ending cash balance Loan activity Loan…
Karim Corporation requires a minimum $8,800 cash balance. Loans taken to meet this requirement cost 1% interest per month (paid at the end of each month). Any preliminary cash balance above $8,800 is used to repay loans at month-end. The cash balance on July 1 is $9,200, and the company has no outstanding loans. Budgeted cash receipts (other than for loans received) and budgeted cash payments (other than for loan or interest payments) follow. Cash receipts Cash payments Beginning cash balance Add: Cash receipts Total cash available Less: Cash payments for Interest on loan Interest revenue Prepare a cash budget for July, August, and September. Note: Negative balances and Loan repayment amounts (If any) should be Indicated with minus sign. Round your final answers to the nearest whole dollar. Total cash payments Preliminary cash balance Loan activity July $ 24,800 29,208 Ending cash balance August $ 32,800 30,800 Loan balance Beginning of month Additional loan (loan repayment) Loan…
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Karim Corporation requires a minimum $8,900 cash balance. Loans taken to meet this requirement cost 2% Interest per month (paid at the end of each month). Any preliminary cash balance above $8,900 is used to repay loans at month-end. The cash balance on July 1 Is $9,300, and the company has no outstanding loans. Budgeted cash receipts (other than for loans received) and budgeted cash payments (other than for loan or Interest payments) follow. Cash receipts Cash payments Beginning cash balance Total cash available Prepare a cash budget for July, August, and September. (Negative balances and Loan repayment amounts (If any) should be Indicated with minus sign. Round your final answers to the nearest whole dollar.) Total cash payments Preliminary cash balance Loan activity July $ 24,900 29,350 Ending cash balance August $ 32,900 30,900 Loan balance - Beginning of month Additional loan (loan repayment) Loan balance - End of month September $ 40,900 32,900 KARIM CORPORATION Cash Budget $…
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Karim Corporation requires a minimum $8,300 cash balance. Loans taken to meet this requirement cost 2% interest per month (paid at the end of each month). Any preliminary cash balance above $8,300 is used to repay loans at month-end. The cash balance on July 1 is $8,700, and the company has no outstanding loans. Budgeted cash receipts (other than for loans received) and budgeted cash payments (other than for loan or interest payments) follow. Cash receipts Cash payments Beginning cash balance Add: Cash receipts Total cash available Less: Cash payments for Interest on loan July $ 24,300 28,450 Prepare a cash budget for July, August, and September. (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign. Round your final answers to the nearest whole dollar.) Total cash payments Preliminary cash balance Loan activity Additional loan (loan repayment) Ending cash balance August $ 32,300 30,300 Loan balance - Beginning of month Additional loan (loan…
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