Michelle an Accountant, likes knowing where every dollar is going, so she has taken on the job
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Question:
Michelle an Accountant, likes knowing where every dollar is going, so she has taken on the job of cash budget for a small company; she wants to go back through the fourthquarter plan before working on the following calendar year's cash budget. After reviewing notes from the management team, she has the following information.
October November December
Cash receipts $ $ $
Cash Disbursements
Additional Information
Line of credit withdrawals must be made on the first of the month in $ increments.
Line of credit payments must be made on the last day of the month in $ increments.
Credit line balance, September $
Annual loan interest rate, with monthly interest payments required.
Minimum monthly cash account balance, $
Cash balance, September $
a Complete the fourth quarter cash budget, reporting amounts for each month and for the quarter overall.
b Assume company executives do not borrow more than $ at any given time in this forth quarter, is this an issue? if so identify for which month it is an issue.
Related Book For
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