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8 Lois Bragg owns a small restaurant in Boston. Ms. Bragg provided her accountant with the following summary information regarding expectations for the month of June. The balance in accounts receivable as of May 31 is $53,000. Budgeted cash and credit sales for June are $143,000 and $594,000, respectively. Credit sales are made through Visa and MasterCard and are collected rapidly. Eighty percent of credit sales is collected in the month of sale, and the remainder is collected in the following month. Ms. Bragg's suppliers da not extend credit. Consequently, she pays suppliers on the last day of the month. Cash payments for June are expected to be $712,000. Ms. Bragg has a line of credit that enables the restaurant to borrow funds on demand; however, they must be borrowed on the last day of the month. Interest is paid in cash also on the last day of the month. Ms. Bragg desires to maintain a $32,000 cash balance before the interest payment. Her annual interest rate is 9 percent. Required a. Compute the amount of funds Ms. Bragg needs to borrow for June. b. Determine the amount of interest expense the restaurant will report on the June pro forma income statement. c. What amount will the restaurant report as interest expense on the July pro forma income statement? Note: Round your answers to 2 decimal places. Leave no cells blank. 2.46 points eBook Hint Print References a. Amount to be borrowed b. Interest expense (June) c. Interest expense (July)

Lois Bragg owns a smail restaurant in Boston. Ms. Bragg provided her accountant with the following surnmary informotion regarding expectations for the month of June. The balance in accounts recelvable as of May 31 is $53,000. Budgeted cash and credit sales for June are $143,000 and $94,000, respectively. Credit sales are made through Visa and MasterCard and are colfected rapldily. Eighty percent of credit sales is collected in the month of sale, and the remainder is collected in the following month. Ms. Bragg's suppliers de not extend credi. Consequently, she pays suppliers on the last day of the month. Cosh payments for June are expected to be $712,000. Ms. Bragg has a line of credit that enables the restaurant to borrow funds on demand; however, they must be borrowed on the last day of the month. Interest is paid in cash also on the last day of the month. Ms. Bragg desires to maintain a $32,000 cash balance before the interest payment. Her annual interest rate is 9 percent. Required a. Compute the amount of funds Ms. Bragg needs to borrow for June. b. Determine the amount of interest expense the restaurant will report on the June pro forma income statement. c. Whot amount will the restourant report as interest expense on the July pro forma income statement? Note: Round your answers to 2 decimal places. Leave no celis blank

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