The following are monthly cash receipts and cash payments for Anson Company : Cash Receipts Cash Payments January $30,000 $31,000 February 15,015 13,000 March 25,000 25,000 The cash balance on January 1 was $500. Anson Company required a minimum cash balance was $1,000. If there is a cash deficit for the month, the company can take a bank loan, at the beginning of the month, to cover the cash shortages. The bank charges a 12% interest annually. Monthly loan interest incurred in the month will be paid the beginning of the following month.

18. What is the ending cash balance for the month of February?

$500

$1,000

$2,000

$3,000

Clear selection

19. How much loan interest the company suppose to pay in cash in the month of February for the loan incurred in January?

$180

$150

$15

$28

20. The total interest expense incurred for the budgeted period, January to March?

$25

$300

$30

$118