The beginning cash balance is $20,000 Sales are forecasted at $800,000 of which 80% will be on credit 70% of credit sales are expected to
The beginning cash balance is $20,000 Sales are forecasted at $800,000 of which 80% 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 $500,000. Accounts receivable from previous accounting periods totaling $12,000 will be collected in the current year. The company is required to make a $20,000 loan payment and an annual interest payment on the last day of the year. The loan balance as of the beginning of the year is $120,000, and the annual interest rate is 10%.
How much will be reported as 'cash' on the budgeted balance sheet?
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Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello
16th edition
0077664078, 978-0077664077, 78111048, 978-0078111044
