Question

1. Prepare a monthly cash budget for the three-month period ending in December.
2. If the firm’s beginning cash balance for the budget period is $7,000, and this is its desired minimum balance, determine when and how much the firm will need to borrow during the budget period. The firm has a $50,000 line of credit with its bank, with interest (10 percent annual rate) paid monthly. For example, interest on a loan taken out at the end of September would be paid at the end of October and every month thereafter as long as the loan was outstanding.



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  • CreatedJanuary 14, 2015
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