cash balance of $10,000 will be maintained throughout the cash budget period. Preparea monthly cash budget for January and February and answer the following:How much surplus (or loan) is expected at the end of February?A $1,900B. $200C. $1,400D. $3,100E. none of the other choices is correct The owner of Madison Pratt Designs is planning to request a line of credit from herbank She has estimated the following sales forecasts for the firm for the followingmonths:November$30,000December $24,000January $19,000February$21,000Collection of sales is expected to be as follows: 20% within the month of sale; 70% themonth following the sale; and 10% the second month following the sale. Total labor andraw materials costs are expected to be incurred as follows:November$12,000December $9,500January $10,500February $13,000These labor and raw materials costs (above) are paid for the month after they areincurred. Salaries cost the firm $4,000 per month; lease payments are $1000 permonth; depreciation charges are expected to be $600 per month; an income taxpayment of $900 will be made in January; and a payment of $1500 for advertising willbe made in February. Cash on hand on January 1st will amount to $2,000, and a targetcash balance of $10.000 will be maintained throughout the cash budget period. Prepare

Cash budget is one of the important budget being prepared in business. It shows expected cash…

Answered: cash balance of $10,000 will be…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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A cash budget. Show the budget by month and in total. Determine any borrowing that would be needed to maintain the minimum cash balance of $57,000.
How do I solve the chart?
Jayden's Carryout Stores has eight locations. The firm wishes to expand by two more stores and needs a bank loan to do this. Mrs. Wilson, the banker, will finance construction if the firm can present an acceptable three-month financial plan for January through March. The following are actual and forecast sales figures: November December Actual $ 240,000 January 260,000 February March Forecast Additional Information $ 320,000 April forecast $360,000 360,000 370,000 Of the firm's sales, 60 percent are for cash and the remaining 40 percent are on credit. Of credit sales, 30 percent are paid in the month after sale and 70 percent are paid in the second month after the sale. Materials cost 30 percent of sales and are purchased and received each month in an amount sufficient to cover the following month's expected sales. Materials are paid for in the month after they are received. Labor expense is 40 percent of sales and is paid for in the month of sales. Selling and administrative expense…
Mecca 4 Company, a retailer of specialty wall-papers, prepares a monthly master budget. Data for the September master budget are given below: a. The August 31st balance sheet (Actual): cash accounts receivable inventory building and equipment (net) $25,000 133,000 32,813 203,500 e. accounts payable August-Actual September-Projected October-Projected November-Projected capital stock retained earnings b. Actual sales for August and budgeted sales for September, October, and November are given below: $62,016 $190,000 375,000 405,000 310,000 295,372 36,925 C. Sales are 30% for cash and 70% on credit. All credit sales are collected in the month following the sale. There are no bad debts. d. The gross margin percentage is 65% of sales. The desired ending inventory is equal to 25% of the following month's COGS. One fourth of the purchases are paid for in the month of the purchase and the remaining 75% are purchased on account and paid in full the following month. The monthly operating…
Carmen Company sells jar candles. The sales forecast (units) for the coming months is: April May June July August 230 250 220 170 230 Each candle costs $12. The ending inventory policy is 40% of next month's sales needs. April 1 inventory will be as expected under the policy. Carmen pays for purchases 30% in the month of purchase and 70% the following month. Accounts payable on April 1 is $3,150. a. Prepare a purchases budget for the quarter ending June 30. Note: Deductible values must be indicated with a minus sign. Budgeted unit sales) Plus: Ending inventory Less: Beginning inventory Budgeted purchases (units) Cost of merchandise (per unit) Total cost of merchandise purchases Merchandise Purchases Budget (Candles) For the Quarter Ending June 30 April May b. Prepare a cash payments budget for the quarter ending June 30. June Total
Coronado, Inc. prepared the following cash budget for the fourth quarter. Fill in the missing amounts, assuming that Coronado desires to maintain a $15,000 minimum monthly cash balance and all equipment was purchased during December. Any required borrowings and repayments must be made in even increments of $1,000. (Enter answers in necessary fields only. Leave other fields blank. Do not enter 0.) Please help me fill in the blanks with work so I can follow along.
Prepare a budgeted income statement for July. Please present your solution in a good form and income statement in good form.
The company provides the following information regarding the cash budget for next year: Quarter 1 Quarter 2 Quarter 3 Quarter 4 Beginning cash balance $5,000 $5,000 $5,000 $5,000 Excess (Deficiency) ($3,000) $2,000 ($2,500) $1,000 The company's policy is to start each quarter with a cash balance of $5,000.The company has access to a line of credit in the amount of $50,000 for any short term borrowing needs and pays the loans off as quickly as possible.The company assumes the cash budget for the year will begins with no loans.What is the expected loan balance at the end of Quarter 2 (ignore interest)?
ONLY ANSWER QUESTION (B) the task of preparing the cash budget for the business for the quarter ending September 30, 2022. Your data collection has yielded the following:i) Extracts from the sales and purchases budgets are as follows:Month CashSales SalesOn Account CashPurchases PurchasesOn AccountMay $75,000 $480,000 $390,000June $135,000 $600,000 $36,000 $360,000July $86,800 $720,000 $61,700 $450,000August $105,600 $640,000 $68,800 $400,000September $112,500 $800,000 $77,250 $500,000ii) An analysis of the records shows that trade…
Nana Kay company must maintain a minimum cash balance of ghc 25000. At the beginning June, the company's cash balance was ghc 17000. Budgeted cash receipts for June are ghc 150000 and budgeted cash disbursement are ghc 201000. Budgeted net income for July totals ghc 11,000. How much will Nana Kay company need to borrow by the end of June?
Please help with question 1 and 2. Both the images are of the same continuing question
Your Company is working on its cash budget for July. The budgeted beginning cash balance is $46,000. Budgeted cash receipts total $174,000 and budgeted cash disbursements total $175,000. The desired ending cash balance is $50,000. What is the excess (deficiency) of cash available over disbursements for July? Group of answer choices $ 45,000 $221,000 $ 50,000 $ 1,000 $ 47,000

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cash balance of $10,000 will be maintained throughout the cash budget perlod. Prepare a monthly cash budget for January and February and answer the following: How much surplus (or loan) is expected at the end of February? A. $1,900 B. $200 C. $1,400 D. $3,100 E. none of the other choices is correct