Uncle's Caps, a merchandiser, have provided the following budgeted amounts for the next budget period.

A minimum cash balance of $250,000 is required to be maintained. The company can borrow in increments of $10,000 as and when required. Assume the company can borrow the needed funds at the end of the period. Calculate the ending cash balance for the budget period.

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Balance of cash at the beginning Cash collections Payments for: Purchase of inventory 350,000 Selling and administrative expenses 70,400 Capital expenditures 89,000 $30,000 680,000 Balance of cash at the beginning Cash collections Payments for: Purchase of inventory 350,000 Selling and administrative expenses 70,400 Capital expenditures 89,000 $30,000 680,000

Answer rating: 100% (QA)

Budget period Beginning cash balance 30000 Cash receipts 680000 Cash available 710000 Cash pa... View the full answer