Question
Cash Budget & Short-Term Financing Presented below are partial October, November, and December cash budgets for Holidays Events. Loans are obtained in increments of $1,000
Cash Budget & Short-Term Financing Presented below are partial October, November, and December cash budgets for Holidays Events.
Loans are obtained in increments of $1,000 at the start of each month to maintain a minimum end-of-month balance of $12,000. Interest is 1% simple interest (no compounding) per month, payable when a loan payment is made. Repayments are made as soon as possible, subject to the minimum end-of-month balance.
Complete the short-term financing section of the cash budget and all missing figures.
Use a negative sign with answers to indicate a cash disbursement or a negative ending cash balance.
HOLIDAY EVENTSPartial Cash BudgetsFor the Months of October, November, and December OctoberNovemberDecemberTotalCash balance, beginning $25,000Answer
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Collection on sales 100,00090,000140,000
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Cash available for operations
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Disbursements for operations (115,000)(110,000)(115,000)
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Ending cash before borrowings or replacements
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Short-term finance: New loans
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Repayments
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Interest
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Cash balance, ending
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