Assume that a minimum cash balance of $25,000 is to be maintained. Also assume that all...

 

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Assume that a minimum cash balance of $25,000 is to be maintained. Also assume that all borrowings are effective at the beginning of the month and all repayments are made at the end of the month of repayment. Interest is paid only at the time principal is repaid. The interest rate is 6 percent. All loans and repayments must be made in multiples of one thousand dollars. Required: 1. Compute April cash collections from sales. Show all your calculations. 2. Prepare the cash budget for the month of April. Show all your calculations. 3. Prepare, in good form, a budgeted income statement for April. Show all your calculations. 4. Prepare, in good form, a budgeted balance sheet for April 30, 2005. Show all your calculations. Assume that a minimum cash balance of $25,000 is to be maintained. Also assume that all borrowings are effective at the beginning of the month and all repayments are made at the end of the month of repayment. Interest is paid only at the time principal is repaid. The interest rate is 6 percent. All loans and repayments must be made in multiples of one thousand dollars. Required: 1. Compute April cash collections from sales. Show all your calculations. 2. Prepare the cash budget for the month of April. Show all your calculations. 3. Prepare, in good form, a budgeted income statement for April. Show all your calculations. 4. Prepare, in good form, a budgeted balance sheet for April 30, 2005. Show all your calculations.

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