financial mgt

12:05 PM Equipment purchase (paid) 7,500 Tax instalment paid 250 Wage expense 25,000 Depreciation expense 1,660 Rent expense 5,600 Interest expense 1,200 Dividend paid 4,500 Opening retained earnings 27,500 Accounts receivable 7,900 All cash expenses and inventory purchases were paid for during the month incurred. The tax rate was 40%. Required: Based on the given information, prepare a Cash Payments Schedule, an Income Statement, and a Statement of Retained Earnings. Walt Burton 2015, updated by Barbara Nudd 2018 7 Buad 195 Chapter 4 (Part 1) Outline Page 8 of 8 Assignment Questions 4. Cashcow has an arrangement with its bank in which the minimum cash balance in its account is $10,000. If the balance falls below $10,000, a short term loan is automatically arranged. Interest is charged on the loan at a rate of 9% per year, and is calculated monthly and paid in the month after the loan is taken. The opening cash balance for January was $10,000. There was a short term bank loan owing on December 31 of $1,000. The cash receipts budget is complete. Complete the cash payments and cash budget for January to May. Dec Feb Jan 54,000 Mar 60,000 Cash Receipts 68,000 Cash Payments Materials Wages Lease Rent 22,000 31,000 900 1,500 26,000 35,000 900 1,500 25,000 36,000 900 1,500 ST Loan Balance $1,000 5. Problem 29, page 131. The interest rate on the short-term loan required to bring the cash balance up to the minimum amount is 6% per year, calculated monthly. It is paid in the following month. Any surplus cash will be used to reduce the loan, if any. =