December $38,881 62,400 101,281 TORONTO STICKS COMPANY Cash Budget October-December October November Beginning cash balance $20,000 $20,000 Add: Cash receipts from customers 49,200 55,200 Total cash available 69,200 75,200 Less: Cash payments for Direct materials 7,060 10,240 Direct labor 2,130 4,020 Variable overhead 1,775 3,350 Sales commissions 6,000 4,800 Sales salaries 2,000 2,000 General and administrative expenses 4,500 4,500 Income taxes payable 20,000 Dividends 3,000 Interest on bank loan October ($10,000 x 1%)* 100 November ($4,365 x 1%)** 44 Purchase of equipment Total cash disbursements 43,565 31,954 Preliminary cash balance $25,635 $43,246 Loan activity Additional loan from bank Repayment of loan to bank 5,635 4,365 Ending cash balance $20,000 $38,881 Loan balance, end of month $ 4,365 $ 0 11,450 2,850 2,375 8,400 2,000 4,500 25,000 56,575 $44,706 $44,706 $ 0 + Rounded to the nearest dollar, 30s Beginning loan balance (note payable) 1:40 / 1:58 1x CC Knowledge Check 01 IP Company has a preliminary cash balance of $25,000 and an agreement with the bank that it will keep a minimum balance of $20,000. IP Company has a beginning loan balance of $12,000. IP Company's ending loan balance is