Shiller Corporation has the following sales forecasts for the selected three-month period in 2016: Month Sales...

 

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Shiller Corporation has the following sales forecasts for the selected three-month period in 2016: Month Sales $24,000 14,000 16,000 All sales are on account. Seventy percent of sales are collected in the month of the sale, and the remainder are July August September collected in the following month. Accounts receivable balance (July 1, 2016) Cash balance (July 1, 2016) $20,000 10,000 Minimum cash balance is $10,000. Cash can be borrowed in $1,000 increments from the local bank (assume no interest charges). What is the cash balance at the end of July, assuming that cash is received only from customers and that $40,000 is paid out during July? a. $20,000 b. $16,800 c. $6,800 d. $10,800 Page 6 a Shiller Corporation has the following sales forecasts for the selected three-month period in 2016: Month Sales $24,000 14,000 16,000 All sales are on account. Seventy percent of sales are collected in the month of the sale, and the remainder are July August September collected in the following month. Accounts receivable balance (July 1, 2016) Cash balance (July 1, 2016) $20,000 10,000 Minimum cash balance is $10,000. Cash can be borrowed in $1,000 increments from the local bank (assume no interest charges). What is the cash balance at the end of July, assuming that cash is received only from customers and that $40,000 is paid out during July? a. $20,000 b. $16,800 c. $6,800 d. $10,800 Page 6 a

Answer rating: 100% (QA)

The correct answer is d 10800 Supporting calculations July Cash balance on July 1 10000 Add C... View the full answer