ABC company Bhd provides the falowing inf armation in respect of its 3-month cash budget for the year 2019 as show in the table below. • ABC company Bhd currently has a cash balance of RM40,000 and intends to maintain a minimum cash balano of RM20,000 each month • The company can barrow at the begiming of the month in which the funds are needed to maintain the minimur cash balance and the inter est an loan is 24% per year. The inter est an autstanding loan is paid in the mont that follows the month in which the loan is dbtained. You are required to complete the 3-month (October, November, and Decenber) cash budget table fr ABC company. Note Provide answers ONLY for cdlared boxes AtoN Manth Oct ober November Decenber 1 Beginning cash balance RM40,000 E J 2 Net Change in cash for the period (RM40,200) RV8,604 RM12,240 3 New financing needed A F K 4 nterest an loan G L 5 Loan repayment C H M 6 Ending cash balance D N 7 Minimumcash balance (RM20,000) (RM20,000) (RM20,000)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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ABC company Bhd provides the following infor mation in respect of its 3 month cash budget for the year 2019 as showr
in the table bel ow.
• ABC company Bhd currently has a cash balance of RM40,000 and intends to maintain a minimum cash balance
of RM20,000 each month
The company can barrow at the beginring of the month in which the funds are needed to maintain the minimun
cash balance and the interest an loan is 24% per year. The interest an out standing loan is paid in the month
that follows the month in which the loan is dot ained.
You are requir ed to complete the 3-month (Oct ober, Novenber, and Decenber) cash budget table for ABC
company. Note: Provide answers ONLY far cdaured baxes A to N
Month
Oct ober
November
December
1 Beginning cash balance
RM40,000
E
J
Net Change in cash for the period
(RM40,200)
RV8,604
RM12,240
3 New financing needed
A
F
K
4 Interest an loan
В
G
L
5 Loan repayment
H
M
6 Ending cash balance
7
Minimumcash balance
(RM20,000)
(RM20,000)
(RV20,000)
2.
Transcribed Image Text:ABC company Bhd provides the following infor mation in respect of its 3 month cash budget for the year 2019 as showr in the table bel ow. • ABC company Bhd currently has a cash balance of RM40,000 and intends to maintain a minimum cash balance of RM20,000 each month The company can barrow at the beginring of the month in which the funds are needed to maintain the minimun cash balance and the interest an loan is 24% per year. The interest an out standing loan is paid in the month that follows the month in which the loan is dot ained. You are requir ed to complete the 3-month (Oct ober, Novenber, and Decenber) cash budget table for ABC company. Note: Provide answers ONLY far cdaured baxes A to N Month Oct ober November December 1 Beginning cash balance RM40,000 E J Net Change in cash for the period (RM40,200) RV8,604 RM12,240 3 New financing needed A F K 4 Interest an loan В G L 5 Loan repayment H M 6 Ending cash balance 7 Minimumcash balance (RM20,000) (RM20,000) (RV20,000) 2.
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