Question
Williams Company makes and sells laundry duffel bags. Each duffel bag sells for $20 and has a unit variable cost of $12. The company has
Williams Company makes and sells laundry duffel bags. Each duffel bag sells for $20 and has a unit variable cost of $12. The company has provided the following budgeting data for March:
Sales (all cash sales) | $34,000 |
Cash balance on March 1 | 4,000 |
Cash disbursements during the month | 36,000 |
A minimum cash balance on March 31 | 4,000 |
If necessary, Williams will borrow cash from the local bank in multiples of $1,000.
Please:
How many units did Williams budget to sell during March?
What is Williams’ budgeted cash balance at the end of the period before borrowing?
How much should Williams budget for borrowing in January?
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Accounting
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
23rd Edition
978-0324662962
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