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Build a cash budget for 2020 See template_3 Refer to your textbook on Chapter 4 4.3 Use the receipts from template_2 Assume cost of sales,
Build a cash budget for 2020 See template_3 Refer to your textbook on Chapter 4 4.3 Use the receipts from template_2 Assume cost of sales, expenses, and taxes are paid 100% each quarter. According to the only loan agreement the company has, the cash balance must be maintained at $30,000. If the balance falls below $30,000, a line of credit is available on a short-term basis. Ignore interest calculations Calculate the Cash Budget for 2020 Part 11 Now you have a budgeted income statement, cash receipts budget and a cash budget, you can determine if you have any opportunities for expansion. If management decided to purchase some equipment for $75,000, what obstacles could they be facing? What are some of the options the company has for financing the equipment. The company's credit rating is perfect. The company has never borrowed money, so what information should the company be prepared to furnish if they decide to borrow? Feline Frills, Inc. Cash Budget 2020 Quarter First Beginning Cash Balance $ 8,185.00 Second Third Fourth Total Add: Cash Receipts $ 33,410 Cash Available $ 41,595.00 Less Payments Balance before borrowing Borrowing/ (repayment) Ending cash balance Build a cash budget for 2020 See template_3 Refer to your textbook on Chapter 4 4.3 Use the receipts from template_2 Assume cost of sales, expenses, and taxes are paid 100% each quarter. According to the only loan agreement the company has, the cash balance must be maintained at $30,000. If the balance falls below $30,000, a line of credit is available on a short-term basis. Ignore interest calculations Calculate the Cash Budget for 2020 Part 11 Now you have a budgeted income statement, cash receipts budget and a cash budget, you can determine if you have any opportunities for expansion. If management decided to purchase some equipment for $75,000, what obstacles could they be facing? What are some of the options the company has for financing the equipment. The company's credit rating is perfect. The company has never borrowed money, so what information should the company be prepared to furnish if they decide to borrow? Feline Frills, Inc. Cash Budget 2020 Quarter First Beginning Cash Balance $ 8,185.00 Second Third Fourth Total Add: Cash Receipts $ 33,410 Cash Available $ 41,595.00 Less Payments Balance before borrowing Borrowing/ (repayment) Ending cash balance
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