Cabaniss Inc. distributes bath bombs. The company has an open line of credit to borrow...
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Cabaniss Inc. distributes bath bombs. The company has an open line of credit to borrow from at the bank up to $150,000 per quarter at 1% per month. Borrowing is in increments of $1,000. a. On July 1, the beginning of the third quarter, the company will have a cash balance of $66,750. The company must maintain at least $20,000 in cash at end of each month. b. Actual sales for the last two months and budgeted sales for the third quarter follow (all sales are on account): May (actual)$375,000 June (actual)$450,000 July.$600,000
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