Question
q7.Due by 1:45pm est usa. No extensions. Yarrow Company has budgeted the following information for June: Cash at 6/1 $3,200 Cash receiptsin June $26,500 Cash
q7.Due by 1:45pm est usa. No extensions.
Yarrow Company has budgeted the following information for June:
| Cash at 6/1 | $3,200 |
| Cash receiptsin June | $26,500 |
| Cash payments in June | $35,000 |
Yarrow has a minimum cash balance policy of $2,000 at the end of any month. If there is a cash shortage, the company borrows money from the bank. All cash is borrowed at the end of the month in $1,000 increments and interest is paid monthly at 1% at the end of the next month. The company had no debt before June 1st. The amount of interest paid on July 31 would be:
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Interpreting And Analyzing Financial Statements
Authors: Karen P Schoenebeck, Mark P Holtzman
5th Edition
0136121985, 9780136121985
