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Questions 28-29 are based on the following data: The Carlquist Company makes and sells a product called Product K. Each unit of Product K sells

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Questions 28-29 are based on the following data: The Carlquist Company makes and sells a product called Product K. Each unit of Product K sells for $24 dollars and has a unit variable cost of $18. The company has budgeted the following data for November: I. II. III. Sales of $1.152,000, all in cash. A cash balance on November 1 of $48,000. Business expenses are $1,260,000, including depreciation of $100,000. Accounts payable balance has not changed from beginning to ending amount. A minimum cash balance on November 30 of $60,000. IV. If necessary, the company will borrow cash from a bank. The borrowing will be in multiples of $1,000 and will bear interest at 2% per month. All borrowing will take place at the beginning of the month. The November interest will be paid in cash during November. 28. The cash disbursements during the month is: a. $1,160,000 b. $1,180,000 c. $1,160,420 d. None of the above. 29. The amount of cash needed to be borrowed on November 1 to cover all cash disbursements and to obtain the desired November 30 cash balance is: a. $20,000. b. $21,000. c. $37,000. d. $38,000

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