McIntyre, Inc has prepared its third quarter budget and provided the following data
Jul Aug Sep
Cash collections $50,000 $39,900 $46,000
Cash payments:
Purchases of direct materials 31,000 22,000 17,500
Operating expenses 12,200 8,700 11,300
Capital expenditures 13,600 24,300 0
The cash balance on June 30 is projected to be $4,500. The company has to maintain a minimum cash balance of $5,000 and is authorized to borrow at the end of each month to make up any shortfalls. It may borrow in increments of $5,000 and has to pay interest every month at an annual rate of 5%. All financing transactions are assumed to take place at the end of the month. The loan balance should be repaid in increments of $5,000 whenever there is surplus cash. Calculate the final projected cash balance at the end of August taking into consideration all the financing transactions.
A) $7,558
B) $(7,442 )
C) $47,600
D) $15,000
A .
You might also like to view...
Misty, Inc. had 24,000 units of ending inventory that were recorded at the cost of $6.00 per unit using the FIFO method. The current replacement cost is $4.75 per unit
Which of the following amounts would be reported as Ending Merchandise Inventory on the balance sheet using the lower-of-cost-or-market rule? A) $144,000 B) $258,000 C) $168,000 D) $114,000
When the grantor does not wish to convey certain property rights, he or she
A) must note the exceptions in a separate document. B) may not do so, as the deed conveys the entire premises. C) may note the exceptions in the deed of conveyance. D) must convey the entire premises and have the grantee reconvey the rights to be retained by the grantor.