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 EVENTS | |||||
---|---|---|---|---|---|
Partial Cash Budgets | |||||
For the Months of October, November, and December | |||||
October | November | December | Total | ||
Cash balance, beginning | $25,000 | ||||
Collection on sales | 100,000 | 90,000 | 140,000 | ||
Cash available for operations | |||||
Disbursements for operations | (115,000) | (110,000) | (115,000) | ||
Ending cash before borrowings or replacements | |||||
Short-term finance: | |||||
New loans | |||||
Repayments | |||||
Interest | |||||
Cash balance, ending |
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