Question
Superior Manufacturing plans to take $1,000,000 from its line of credit on February 1, 2021. The company expects to have sufficient cash during the month
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Superior Manufacturing plans to take $1,000,000 from its line of credit on February 1, 2021. The company expects to have sufficient cash during the month of June 2021 to repay the amount borrowed with the related interest. If the annual interest is 9% per year, how much will the company show for the payment of interest on its cash budget?
$60,000.
$30,000.
$45,000.
$90,000.
Some other amount.
$60,000.
$30,000.
$45,000.
$90,000.
Some other amount.
Superior Manufacturing plans to take $1,000,000 from its line of credit on February 1, 2021. The company expects to have sufficient cash during the month of June 2021 to repay the amount borrowed with the related interest. If the annual interest is 9% per year, how much will the company show for the payment of interest on its cash budget?
| $60,000. | ||
| $30,000. | ||
| $45,000. | ||
| $90,000. | ||
| Some other amount. | ||
| $60,000. | ||
| $30,000. | ||
| $45,000. | ||
| $90,000. | ||
| Some other amount. |
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Managerial Accounting For Clarion University Of Pennsylvania
Authors: Ray H. Garrison
14th Edition
0077577515, 978-0077577513
