Question: Hong Company has budgeted the following cash flows

Hong Company has budgeted the following cash flows:


Hong had a $36,000 cash balance on April 1. The company desires a $60,000 cash cushion before paying interest. Funds are assumed to be borrowed, in increments of $1,000, and repaid on the last day of each month; the interest rate is 1.50 percent per month. Hong also pays its vendors on the last day of the month.

Required
Prepare a cashbudget.
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  • CreatedFebruary 07, 2014
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