Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Crane Company is preparing a cash payments budget. Below is a schedule of financial data that will be used to prepare the budget. What is

image text in transcribed
image text in transcribed
Crane Company is preparing a cash payments budget. Below is a schedule of financial data that will be used to prepare the budget. What is the cash payments budget for November? September October November December Purchases $32.996 $73,008 $49,858 Cash Operating Costs $4,555 $8,267 $9,546 Cash paid for new equipment $1,907 $2,105 $3,425 Accounts Payable at End $12,015 of Month Purchases are paid for as follows: In Month of Purchase 60% In Month After Purchase 40% Enter your answer to the nearest whole dollar, Crane Company is preparing a cash summary budget using the data below. They have already prepared their cash receipts and cash payments budget so that data is provided: October November Beginning Cash Balance $16000 Expected Cash Receipts $63000 $95000 Expected Cash Payments $45000 $76000 Management always wants to maintain a $40,690 minimum cash balance at the end of every month. If there is an expected cash shortfall in the budget they will be proactive and borrow money at the first day of the month. That way they will not risk having too low of a balance during the month. They can borrow any amount of money needed. They may not pay loans back in installments. They have to pay them back all at once. The interest rate is 12%. Assume if they pay back money, they pay it back on the last day of the month. What is the ending cash balance for November after all loan repayments of principle and interest? Round your answer to the nearest whole dollar

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: Hartgraves And Morse

6th Edition

1934319805, 978-1934319802

More Books

Students also viewed these Accounting questions

Question

What is RMI Registry?

Answered: 1 week ago

Question

What are all the ways you count or measure customer complaints?

Answered: 1 week ago

Question

Do your staff and customers know these examples?

Answered: 1 week ago