Cash Budget.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Subject: accounting
![Required information
[The following information applies to the questions displayed below.]
The following trial balance was drawn from the records of Havel Company as of October 1, year 2.
Cash
Accounts receivable
Inventory
Store equipment.
Accumulated depreciation
Accounts payable
Line of credit loan.
Common stock
Retained earnings
Totals
Cash Budget for October
Beginning cash balance
Add: Cash receipts
Cash available
Less: Payments
For inventory purchases
For S&A expenses
$ 16,000
60,000
40,000
200,000
Indicate whether Havel will need to borrow money during October by preparing October's Cash Budget. (Negative amounts should be indicated by a minus sign.)
Total budgeted payments
Cash surplus (shortage)
Will Havel need to borrow money during October?
$316,000
$
$76,800
72,000
100,000
50,000
17,200
$316,000
Yes
16,000
100,000
116,000
106,800
106,800](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc7fe5a73-45e4-4166-8ba1-50e355550dfc%2Fe8319c63-7d5c-4ab5-9de6-f6fcfed4ec81%2Fviwk0rh_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
The following trial balance was drawn from the records of Havel Company as of October 1, year 2.
Cash
Accounts receivable
Inventory
Store equipment.
Accumulated depreciation
Accounts payable
Line of credit loan.
Common stock
Retained earnings
Totals
Cash Budget for October
Beginning cash balance
Add: Cash receipts
Cash available
Less: Payments
For inventory purchases
For S&A expenses
$ 16,000
60,000
40,000
200,000
Indicate whether Havel will need to borrow money during October by preparing October's Cash Budget. (Negative amounts should be indicated by a minus sign.)
Total budgeted payments
Cash surplus (shortage)
Will Havel need to borrow money during October?
$316,000
$
$76,800
72,000
100,000
50,000
17,200
$316,000
Yes
16,000
100,000
116,000
106,800
106,800
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