Question
. Sunshine Company is ready to begin its third quarter, in which peak sales occur. The company requested a $30,000, 90-day loan from its bank
. Sunshine Company is ready to begin its third quarter, in which peak sales occur. The company requested a $30,000, 90-day loan from its bank to help meet cash requirements during the quarter. Since Sunshine Company has experienced difficulty in paying off its loans in the past, the loan officer at the bank has asked the company to prepare a cash budget for the quarter. In response to the request the following data has been assembled.
1. On July 1, the beginning of the quarter, the company will have a cash balance of $94,500.
2. The selling price per unit is $50. Actual sales units for the last two months and the budgeted sales for the third quarter follow:
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