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Mike's Motors Corp. manufactures motors for dirt bikes. The company requires a minimum $30,000 cash balance at each month-end. If necessary, the company borrows to meet this requirement, at a cost of 2% interest per month (paid at the end of each month). Any cash balance above $30,000 at month-end is used to repay loans. The cash balance on July 1 is $42,000, and the company has no outstanding loans at that time. Forecasted cash recelpts and forecasted cash payments (other than for loan activity) are as follows. Cash Cash July August September Receipts S 93,000 119,000 158,000 Payments $121, 000 107,900 135,400 Prepare a cash budget for July, August, and September. (Negatlve balances and Loan repayment amounts (If any) should be Indicated with minus sign. Round your final answers to the nearest whole dollar.) Answer is complete but not entirely correct. MIKE'S MOTORS CORP. Cash Budget For July, August, and September July August September S 42,000 s 30,000 Beginning cash balance Cash receipts Total cash available Cash payments Interest expense Preliminary cash balance Additional loan (loan rерayment) Ending cash balance 30,000 93,000 119,000 158,000 135,000 149,000 188,000 121,000 107,900 135,400 320 98 14,000 40,780 52,502 16,000 O (11,100) 8 s 30,000 (4,900) s 29,680 47,602 Loan balance Beginning cash balance Additional loan (loan гераyment) S 16,000 4,900 16,000 (11,100) (4,900) I nan halance Month-end Is 16 000 4 900

Mike's Motors Corp. manufactures motors for dirt bikes. The company requires a minimum $30,000 cash balance at each month-end. If necessary, the company borrows to meet this requirement, at a cost of 2% interest per month (paid at the end of each month). Any cash balance above $30,000 at month-end is used to repay loans. The cash balance on July 1 is $42,000, and the company has no outstanding loans at that time. Forecasted cash recelpts and forecasted cash payments (other than for loan activity) are as follows. Cash Cash July August September Receipts S 93,000 119,000 158,000 Payments $121, 000 107,900 135,400 Prepare a cash budget for July, August, and September. (Negatlve balances and Loan repayment amounts (If any) should be Indicated with minus sign. Round your final answers to the nearest whole dollar.) Answer is complete but not entirely correct. MIKE'S MOTORS CORP. Cash Budget For July, August, and September July August September S 42,000 s 30,000 Beginning cash balance Cash receipts Total cash available Cash payments Interest expense Preliminary cash balance Additional loan (loan rерayment) Ending cash balance 30,000 93,000 119,000 158,000 135,000 149,000 188,000 121,000 107,900 135,400 320 98 14,000 40,780 52,502 16,000 O (11,100) 8 s 30,000 (4,900) s 29,680 47,602 Loan balance Beginning cash balance Additional loan (loan гераyment) S 16,000 4,900 16,000 (11,100) (4,900) I nan halance Month-end Is 16 000 4 900

Excel Applications for Accounting Principles
Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
Chapter21: Cash Budgeting (cashbud)
Section: Chapter Questions
Problem 1R: On January 1, Sweet Pleasures, Inc., begins business. The company has 14,000 cash on hand and is...
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Mike's Motors Corp. manufactures motors for dirt bikes. The company requires a minimum $30,000 cash balance at each month-end. If necessary, the company borrows to meet this requirement, at a cost of 2% interest per month (paid at the end of each month). Any cash balance above $30,000 at month-end is used to repay loans. The cash balance on July 1 is $42,000, and the company has no outstanding loans at that time. Forecasted cash receipts and forecasted cash payments (other than for loan activity) are as follows. Cash Cash Receipts $ 93,000 July August September Payments $121,000 107,900 135,400 119,000 158,000 Prepare a cash budget for July, August, and September. (Negatlve balances and Loan repayment amounts (If any) should be Indicated with mlnus sign. Round your final answers to the nearest whole dollar.) Answer is complete but not entirely correct. MIKE'S MOTORS CORP. Cash Budget For July, August, and September July August September S 30,000 Beginning cash balance Cash receipts Total cash available $ 42,000 30,000 93,000 119,000 158,000 135,000 149,000 188,000 Cash payments 121,000 107,900 135,400 Interest expense 320 98 Preliminary cash balance Additional loan (loan rераyment) Ending cash balance 14,000 40,780 52,502 16,000 (11,100) (4,900) S 30,000 S 29,680 47,602 Loan balance Beginning cash balance Additional loan (loan rераyment) Loan balance, Month-end S 16,000 IS 4,900 16,000 (11,100) (4,900) $ 16,000 IS 4,900 IS
Transcribed Image Text:Mike's Motors Corp. manufactures motors for dirt bikes. The company requires a minimum $30,000 cash balance at each month-end. If necessary, the company borrows to meet this requirement, at a cost of 2% interest per month (paid at the end of each month). Any cash balance above $30,000 at month-end is used to repay loans. The cash balance on July 1 is $42,000, and the company has no outstanding loans at that time. Forecasted cash receipts and forecasted cash payments (other than for loan activity) are as follows. Cash Cash Receipts $ 93,000 July August September Payments $121,000 107,900 135,400 119,000 158,000 Prepare a cash budget for July, August, and September. (Negatlve balances and Loan repayment amounts (If any) should be Indicated with mlnus sign. Round your final answers to the nearest whole dollar.) Answer is complete but not entirely correct. MIKE'S MOTORS CORP. Cash Budget For July, August, and September July August September S 30,000 Beginning cash balance Cash receipts Total cash available $ 42,000 30,000 93,000 119,000 158,000 135,000 149,000 188,000 Cash payments 121,000 107,900 135,400 Interest expense 320 98 Preliminary cash balance Additional loan (loan rераyment) Ending cash balance 14,000 40,780 52,502 16,000 (11,100) (4,900) S 30,000 S 29,680 47,602 Loan balance Beginning cash balance Additional loan (loan rераyment) Loan balance, Month-end S 16,000 IS 4,900 16,000 (11,100) (4,900) $ 16,000 IS 4,900 IS
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