Santos Company is preparing a cash budget for February. The company has $12,000 cash at the beginning of February and budgets $69,000 in cash receipts from sales and $107,000 in cash payments during February. Prepare the cash budget for February assuming the company maintains a $4,000 minimum cash balance and will take a loan if necessary to maintain this balance. The company has no loans outstanding on February 1. (Negative cash balances, if any, should be indicated with minus sign.) SANTOS COMPANY Cash Budget February Beginning cash balance $ 12,000 Add: Cash receipts from sales 69,000 Total cash available 81,000 Less: Cash payments 107,000 Preliminary cash balance $ 21,000 Loan activity Additional loan Ending cash balance Loan balance, end of month

Santos Company is preparing a cash budget for February. The company has $12,000 cash at the beginning of February and budgets $69,000 in cash receipts from sales and $107,000 in cash payments during February. Prepare the cash budget for February assuming the company maintains a $4,000 minimum cash balance and will take a loan if necessary to maintain this balance. The company has no loans outstanding on February 1. (Negative cash balances, if any, should be indicated with minus sign.) SANTOS COMPANY Cash Budget February Beginning cash balance $ 12,000 Add: Cash receipts from sales 69,000 Total cash available 81,000 Less: Cash payments 107,000 Preliminary cash balance $ 21,000 Loan activity Additional loan Ending cash balance Loan balance, end of month

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter4: Financial Planning And Forecasting

Section: Chapter Questions

Problem 4P

See similar textbooks

Similar questions

All Temps has a policy of always paying within the discount period, and each of its suppliers provides a discount of 2% if paid within 10 days of purchase. Because of the purchase policy, 80% of its payments are made in the month of purchase and 20% are made the following month. The direct materials budget provides for purchases of $23,812 in February, $23,127 in March, $21,836 in April, and $28,173 in May.What is the balance in accounts payable for April 30, and May 31?
Santos Company is preparing a cash budget for February. The company has $19,000 cash at the beginning of February and budgets $72 000 in cash receipts from sales and $100,000 in cash payments during February. Prepare the cash budget for February assuming the company maintains a $5,000 minimum cash balance and will take a loan if necessary to maintain this balance. The company has no loans outstanding on February 1. (Negative cash balances, if any, should be indicated with minus sign.) SANTOS CO. Cash Budget February Beginning cash balance Total cash available Preliminary cash balance Loan activity Ending cash balance Loan balance, end of month
Santos Company is preparing a cash budget for February. The company has $15,000 cash at the beginning of February and budgets $72,000 in cash receipts from sales and $105,000 in cash payments during February. Prepare the cash budget for February assuming the company maintains a $5,000 minimum cash balance and will take a loan if necessary to maintain this balance. The company has no loans outstanding on February 1. (Negative cash balances, if any, should be indicated with minus sign.) SANTOS COMPANY Cash Budget Beginning cash balance Total cash available Preliminary cash balance Loan activity Ending cash balance Loan balance, end of month February
Santos Company is preparing a cash budget for February. The company has $19,000 cash at the beginning of February and budgets $74,000 in cash receipts from sales and $106,000 in cash payments during February. Prepare the cash budget for February assuming the company maintains a $5,000 minimum cash balance and will take a loan if necessary to maintain this balance. The company has no loans outstanding on February 1. (Negative cash balances, if any, should be indicated with minus sign.)
Santos Company is preparing a cash budget for February. The company has $16,000 cash at the beginning of February and budgets $65,000 in cash receipts from sales and $114,000 in cash payments during February. Prepare the cash budget for February assuming the company maintains a $5,000 minimum cash balance and will take a loan if necessary to maintain this balance. The company has no loans outstanding on February 1. (Negative cash balances, if any, should be indicated with minus sign.) SANTOS COMPANY Cash Budget February Beginning cash balance Total cash available Preliminary cash balance Loan activity Ending cash balance Loan balance, end of month
Santos Co. is preparing a cash budget for February. The company has $12,000 cash at the beginning of February and anticipates $67,000 in cash receipts and $119,000 in cash disbursements during February. What amount, if any. must the company borrow during February to maintain a $5,000 cash balance? The company has no loans outstanding on February 1. (Negative cash balances, if any, should be Indicated with minus sign.) SANTOS CO. Cash Budget For Month Ended February 28 Beginning cash balance Total cash available Preliminary cash balance Ending cash balance
Santos Co. is preparing a cash budget for February. The company has $14,000 cash at the beginning of February and anticipates $69,000 in cash receipts and $119,000 in cash disbursements during February. What amount, if any. must the company borrow during February to maintain a $5,000 cash balance? The company has no loans outstanding on February 1. (Negative cash balances, if any, should be Indicated with minus sign.) For Month Ended February 28 SANTOS CO. Cash Budget Beginning cash balance Total cash available Preliminary cash balance Ending cash balance
Santos Co. is preparing a cash budget for February. The company has $20,000 cash at the beginning of February and anticipates $75,000 in cash receipts and $100,250 in cash payments during February. What amount, if any, must the company borrow during February to maintain a $5,000 cash balance? The company has no loans outstanding on February 1.
Santos Co. is preparing a cash budget for February. The company has $14,000 cash at the beginning of February and anticipates $74,000 in cash receipts and $110,000 in cash payments during February. What amount, if any, must the company borrow during February to maintain a $5,000 cash balance? The company has no loans outstanding on February 1. (Negative cash balances, if any, should be indicated with minus sign.)
Western Company is preparing a cash budget for June. The company has $10,400 in cash at the beginning of June and anticipates $31,600 in cash receipts and $37,700 in cash payments during June. Western Company has an agreement with its bank to maintain a minimum cash balance of $10,000. As of May 31, the company has no loans outstanding. To maintain the $10,000 required balance, during June the company must:
Western Company is preparing a cash budget for June. The company has $10,300 in cash at the beginning of June and anticipates $31,700 in cash receipts and $37,900 in cash payments during June. Western Company has an agreement with its bank to maintain a minimum cash balance of $10,000. As of May 31, the company has no loans outstanding. To maintain the $10,000 required balance, during June the company must: Multiple Choice Repay $4,100. Borrow $10,000. Borrow $5,900. Borrow $6,200. Repay $5,900.
Messers Company is preparing a cash budget for February. The company has $20,000 cash at the beginning of February and anticipates $75,000 in cash receipts and $100,250 in cash disbursements during February. What amount, if any, must the company borrow during February to maintain a $5,000 cash balance? The company has no loans outstanding on February 1. MESSERS COMPANY Cash Budget For Month Ended February 28 Beginning cash balance Total cash available Preliminary cash balance Ending cash balance