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Clover Company has $12,000 at June 1. Clover also anticipates $30,000 in cash receipts and $34,500 in cash disbursements for the month of June. The company has a policy of maintaining a cash balance of $10,000 at the end of each month. Clover also has an agreement with its bank to borrow or repay funds necessary to maintain the required ending balance. As of May 31, the company owes $15,000 to the bank. What is the ending balance of the loan on June 30?   Multiple Choice   a)$19,500   b)$25,000   c)$17,500   d)$12,500   e)$7,500

Clover Company has $12,000 at June 1. Clover also anticipates $30,000 in cash receipts and $34,500 in cash disbursements for the month of June. The company has a policy of maintaining a cash balance of $10,000 at the end of each month. Clover also has an agreement with its bank to borrow or repay funds necessary to maintain the required ending balance. As of May 31, the company owes $15,000 to the bank. What is the ending balance of the loan on June 30?   Multiple Choice   a)$19,500   b)$25,000   c)$17,500   d)$12,500   e)$7,500

Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter5: Sales And Receivables
Section: Chapter Questions
Problem 50BE: Accounts Receivable Balance XYZ Corp sells widgets to consumers for $20 each. Its beginning accounts...
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Clover Company has $12,000 at June 1. Clover also anticipates $30,000 in cash receipts and $34,500 in cash disbursements for the month of June. The company has a policy of maintaining a cash balance of $10,000 at the end of each month. Clover also has an agreement with its bank to borrow or repay funds necessary to maintain the required ending balance. As of May 31, the company owes $15,000 to the bank. What is the ending balance of the loan on June 30?

 

Multiple Choice
 
a)$19,500
 
b)$25,000
 
c)$17,500
 
d)$12,500
 
e)$7,500
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