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Hi, I am designing a Master budget, I am currently working on the cash budget and need help with the Financing section The important information
Hi, I am designing a Master budget, I am currently working on the cash budget and need help with the Financing section
The important information is this (really confused what to the in January)
- Karantika Ltd has estimated the following payments in the first semester 2020: January: Loan for $40,000 plus interest payable at 31 December 2019 for $2,000 were paid on 2 January 2020. End of January: Dividends $100,000 Beginning of May: Purchase of land $200,000 Beginning of June: Purchase of equipment for $300,000. Estimated of useful life 5 year with zero residual value. 9.
- Karantika Ltd maintain a 18% open line of credit for $400,000. Interests are paid at the end of each month. Karantika Ltd maintains a minimum cash balance of $20,000. The company borrows on the first day of the month and repays loans on the last day of the month, both in multiples of $1,000. The income tax is 30%.
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