Cnton Company sells air purifiers to customers for $150 per unit. An overseas company supplies the purifiers for per unit. $80 Al sales are for cash and the company pays the supplier immediately. The company has budgeted the following data for the first quarter: Sales (in units) Cash, beginning balance Selling and administrative (of which depreciation, $8,000) Required minimum cash balance January February 2,000 $42,000 $205,000 $20,000 March 2,500 2,100 $205,000 $20,000 3 If necessary, the company will borrow cash from a bank through their credit-line arrangement on the first day of $205,000 $20,000 each month. Assume that they can borrow in increment of $1,000. The bank requires an interest payment at the end of each month at a monthly rate of 1%, starting from the first month when the company borrows cash. What is the closest amount of cash balance on February 1? JAWARY 309,000 160,00 140000 42.00 А. $ SALES 30,959 20,640 30,920 30,340 E. None of the above В. 2$ С. 2$ COGSO D. $

Schedule of Cash Payments for a Service Company EastGate Physical Therapy Inc. is planning its cash payments for operations for the first quarter (January-March). The Accrued Expenses Payable balance on January 1 is $33,700. The budgeted expenses for the next three months are as follows: Salaries Utilities Other operating expenses Total January February March $77,500 $94,400 $104,500 6,400 7,100 8,400 59,700 $143,600 65,100 $166,600 71,600 $184,500 Other operating expenses include $4,200 of monthly depreciation expense and $1,000 of monthly insurance expense that was prepaid for the year on May 1 of the previous year. Of the remaining expenses, 65% are paid in the month in which they are incurred, with the remainder paid in the following month. The Accrued Expenses Payable balance on January 1 relates to the expenses incurred in December. Prepare a schedule of cash payments for operations for January, February, and March. Enter all amounts as positive numbers. EastGate Physical Therapy…

Schedule of Cash Payments for a Service Company EastGate Physical Therapy Inc. is planning its cash payments for operations for the first quarter (January- March). The Accrued Expenses Payable balance on January 1 is $25,200. The budgeted expenses for the next three months are as follows: Salaries Utilities Other operating expenses Total January February March $58,000 $70,600 $78,100 4,800 5,300 6,300 44,700 48,700 53,600 $107,500 $124,600 $138,000 Other operating expenses include $3,200 of monthly depreciation expense and $700 of monthly insurance expense that was prepaid for the year on May 1 of the previous year. Of the remaining expenses, 80% are paid in the month in which they are incurred, with the remainder paid in the following month. The Accrued Expenses Payable balance on January 1 relates to the expenses incurred in December. Prepare a schedule of cash payments for operations for January, February, and March. EastGate Physical Therapy Inc. Schedule of Cash Payments for…

Corning Incorporated sells its product for $24 per unit.  Its actual and projected sales follow:     Units Dollars January (actual) 18,500 $444,000 February (actual) 23,000    552,000 March (budgeted) 19,800    475,200 April (budgeted) 18,950    454,800 May (budgeted) 22,000    528,000   Here is added information about Corning’s operations:   All sales are on credit.  Recent experience show that 35% of sales are collected in the month of the sale, 45% in the month following the sale, 17% in the second month after the sale, and 3% prove to be uncollectible.  The product’s purchase price is $15 per unit.  All payments are payable within 21 days.  Thus 30% of purchases in any given month are paid for in that month, with the remaining 70% paid for in the following month.  The company has a policy to maintain an ending inventory of 20% of the next month’s projected sales plus a safety stock of 100 units.  The January 31 and February 28…