The monthly cash budgets for the second quarter of 2019 follow ($000 omitted) for Forest Hills Mfg.

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The monthly cash budgets for the second quarter of 2019 follow ($000 omitted) for Forest Hills Mfg. Co. A minimum cash balance of $30,000 is required to start each month, and a $100,000 line of credit has been arranged with a local bank at a 8% interest rate.

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Required:

Calculate the missing amounts. (Hint: The total cash available includes collections from customers for all three months, plus the beginning cash balance from April 1, 2019.)

Line of Credit
A line of credit (LOC) is a preset borrowing limit that can be used at any time. The borrower can take money out as needed until the limit is reached, and as money is repaid, it can be borrowed again in the case of an open line of credit. A LOC is...
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Related Book For  book-img-for-question

Accounting What the Numbers Mean

ISBN: 978-1260565492

12th edition

Authors: David Marshall, Wayne McManus, Daniel Viele

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