Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. the arkansas company makes and sells a product cal

The Arkansas Company makes and sells a product called Product K. Each unit of Product...

80.2K

Verified Solution

Question

Accounting

The Arkansas Company makes and sells a product called Product K. Each unit of Product K sells for $25 dollars and has a unit variable cost of $19. The company has budgeted the following data for November: Sales of $1,162,200, all in cash. A cash balance on November 1 of $49,100. Cash disbursements (other than interest) during November of $1,170,000. A minimum cash balance on November 30 of $62,000.

If necessary, the company will borrow cash from a bank. The borrowing will be in multiples of $1,000 and will bear interest at 3% per month. All borrowing will take place at the beginning of the month. The November interest will be paid in cash during November. The amount of cash needed to be borrowed on November 1 to cover all cash disbursements and to obtain the desired November 30 cash balance is:

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

General Management
1.2K views

Business risk management Samsung Company Question: gather information on its loss exposures, loss history, after loss activities,...

Physics
1.2K views

4 25 A ball of mass m moving with a velocity v undergoes an oblique...

Physics
1.2K views

A thin metallic spherical shell carries a charge Q on it A point charge q...

Geometry
1.2K views

3 Find all missing 14 0 120 2 Sides and angles using

Basic Math
1.2K views

11 Of the following numbers which one is prime 32 42 29 15 O A...

Algebra
1.2K views

If the constant 9 of the function y x2 9 is changed to 3 how...

Algebra
1.2K views

The first step to determine that the rectangle in Quadrant III is congruent to the...

Accounting
1.2K views

Enamour Company purchased a new car for use in its business on January 1, 2020....

Accounting
1.2K views

Bobs Chocolate Chips and More, a bakery specializing in gourmet pizza and chocolate chip cookies,...

Accounting
1.2K views

The left-side dashboard shows a company's beginning and ending accounts payable along with credit purchases...

Finance
1.2K views

In 30 years, what will be the approximate value of $1,000 that is saved at...

Finance
1.2K views

The following three defense stocks are to be combined into a stock index in January...