Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. i give likes company is given below (000 omi

I give likes company is given below (000 omitted)....

70.2K

Verified Solution

Question

Accounting

I give likes
image
image
company is given below (000 omitted). The company requires a minimum cash balance of $5,000 to start each quarter, The cash budget for the first three quarters of the H If necessary, the company will borrow money from its bank to maintain this balance. The company will pay no interest in Quarters 1, 2, and 3. It will repay as much of its borrowings as possible as soon as it has more than $5,000 in cash in a given quarter. Suppose the company starts the first quarter with no bank debt. How much total bank debt does the company expect to have at the end of the third quarter? Cash Budget Quarter (000 omitted) 1 2 3 Cash balance, beginning $9 ? Add collections from customers 88 128 Total cash available ? Less disbursements Purchase of inventory 65 45 Selling and administrative expenses Equipment purchases Dividends Total disbursements Excess (deficiency) of cash available over disbursements Financing: Borrowings Repayments. Total financing Cash balance, ending ? 55 41 9 2 2 ? ? ? ? 9 2 ? ? ? ? ? ? ? 88 7 65 48 12 2 ? Multiple Choice $15.000 $7,000 $39.000 $47,000

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students