QUESTION # C-3 Andy Corp. purchase all merchandise on credit. They pay for purchases in the following manner: 30% in the month of purchase 70% in the month following the purchase. Purchases for each on the following months were as follows: February $500,000 March $800,000 April $200,000 What cash was required to pay for merchandise purchases in the month of April? QUESTION # C-4 CASH BUDGET Keeper Company budgeted the following cash receipts and disbursements from operations for the months of November and December: Receipts Disbursements November $400,000 $520,000 December 700,000 300,000 According to the credit agreement with the company's bank. Keeper promises to have a minimum cash balance of $40,000 at the end of each month. In return, the bank has agreed that the company can borrow in $5,000 increments up to $300,000 with interest of 12% per year (1% per month). They can payoff the loan as soon as they have the cash to do so in any increment. The interest is calculated on the beginning balance of the loan for the month. The company is expected to have a cash balance of $30,000 and a loan balance of $60,000 on October 31. Prepare a monthly cash budget for November and December (ANSWER SHEET IS PROVIDED on the Answer grid)