The beginning cash balance is $15,000. Sales are forecasted at $900,000 of which 75% will be on credit. 70% of credit sales are expected to be collected in the year of sale. Cash expenditures for the year are forecasted at $365,000. Accounts Receivable from previous accounting periods totaling $20,000 will be collected in the current year. The company is required to make a $20,000 loan payment including annual interest on the last day of every year. The loan balance as of the beginning of the year is $90,000, and the annual interest rate is 10%.

Instructions

Compute the excess of cash receipts over cash disbursements and the ending cash balance. Show your work.

Cash collections:

Accounts receivable collected

Cash sales:

Credit sales:

Cash expenditures

Loan payment

Interest payment

Net increase in cash