Question
Miley has a cash balance of $10000 on January 1 of the current year. The company's controller forecast the following cash receipts and cash disbursements:
Miley has a cash balance of $10000 on January 1 of the current year. The company's controller forecast the following cash receipts and cash disbursements:
Month | Cash Receipts | Cash Disbursements |
January | $45999 | $56320 |
February | $69465 | $75591 |
March | $73523 | $65685 |
Management desires a minimum balance of $10,000 at all times. If necessary, additional financing can be obtained at a 12% interest rate. Interest is paid at the time of repaying the loan principal.
Note: for calculating interest, if our budget indicates we will need to borrow money, we will plan to do so at the beginning of the month. When we are able to repay the balance we will do so at the end of the month. Use the format below to create a cash balance.
January | February | March | |
Beginning cash balance | |||
Add: cash receipts | |||
Subtotal | |||
Less: cash payments | |||
Cash balance before financing/repayment | |||
Financing: | |||
Borrowing to maintain minimum balance | |||
Principal repayment | |||
Interest payment | |||
Ending cash balance |
Assuming the month started with the minimum cash required, what is the March cash balance before financing/repayment? Round ONLY your final answer to the nearest whole dollar amount. Do not round intermediate calculations.Enter your answer as either positive (no sign) or negative (use a - sign).
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