Question
A company requires its services to make a cash budget for the quarter from March to May, for which it provides information on the projected
A company requires its services to make a cash budget for the quarter from March to May, for which it provides information on the projected income and expenses.
|
|
|
| March | April | May |
| Cash Inflows |
|
| $430,000 | $150,000 | $350,000 |
| Cash payments |
|
| $380,000 | $260,000 | $255,000 |
- The company policy states to have a minimum of $20,000 and a maximum of $22,000 in cash at the end of each month. If the surplus exceeds the maximum amount, then it will go to marketable securities. Loan can be paid in full or in part payments.
- You are asked to prepare a monthly Forecasted cash flow statement, calculating how much the company will borrow in case of losses, or how much should be invested in marketable securities in the event of surpluses
- The beginning cash balance is $ 20,000
What will be the Final Cash balance in March?
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Tax Audit Guidelines For The State Of California Employment Development Department
Authors: State Of California, Employment Development Department
1st Edition
B0C1J7KT6R, 979-8390634066
