Answered step by step
Verified Expert Solution
Question
1 Approved Answer
please i need help as soon as possible Question 19 7 pts Below are the forecasted cash receipts and cash payments for Alec Company for
please i need help as soon as possible
Question 19 7 pts Below are the forecasted cash receipts and cash payments for Alec Company for the first four months of the year. January February March April Budgeted Cash Collections $130,000 $60.000 $80,000 $190.000 Budgeted Cash Payments: Operating Expenses $110.000 $59.000 $73.000 $140,000 Dividends O 20.000 . Equipment Purchase 0 O 40.000 O Total Budgeted Cash Payments $110,000 $59,000 $133,000 $140,000 On January 1, Alec Company had a cash balance of $2,000. Beginning this year, Alec has decided to have a policy of maintaining a cash balance of at least $15.000 at the end of each month. Alec plans to pay back loans as soon as possible. So, if Alec has surplus cash in any month, that cash will be used to repay any outstanding loans. Also, assume that there is no interest on Alec's loans and that Alec had no loans outstanding at the beginning of the year. How much must Alec Company plan to borrow in March? O $140,000 O Equipment Purchase 20.000 0 O 40,000 Total Budgeted Cash Payments ol $110,000 $59.000 $133.000 $140,000 On January 1, Alec Company had a cash balance of $2,000. Beginning this year, Alec has decided to have a policy of maintaining a cash balance of at least $15,000 at the end of each month. Alec plans to pay back loans as soon as possible. So, if Alec has surplus cash in any month, that cash will be used to repay any outstanding loans. Also, assume that there is no interest on Alec's loans and that Alec had no loans outstanding at the beginning of the year. How much must Alec Company plan to borrow in March? O $30,000 O $15.000 O $45,000 O $65,000Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started