Nash Corp's accounting team is putting together the cash budget for the fourth quarter of the...

    
  

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Nash Corp's accounting team is putting together the cash budget for the fourth quarter of the current year. Budgeted cash receipts and cash disbursements for DM are listed below, along with other budgeted costs and additional information. Budgeted cash receipts Budgeted cash disbursements for DM purchases Budgeted DL and MOH cost Budgeted SG&A cost . . ● . ● October $318,000 45,200 137,400 125,700 November $300,000 67,300 145,500 129,400 December $325,000 50,500 150,100 124,000 Beginning cash balance on October 1 is $22,200; minimum required balance is $20,000. Budgeted MOH cost includes $12.400 of depreciation each month. Budgeted SG&A cost includes $13,800 of depreciation each month. A line of credit is available from the bank, subject to a 4% annual interest rate; withdrawals must be made on the first of the month, and repayments must be made on the last day of the month. The withdrawals and repayments must be in $500 increments. If excess cash is available, the following spending priorities have been identified (in order of priority). 1. Equipment purchase of $30,000 (must be made at some point during this quarter with available cash or loan from the bank). N 2. 3. Research and development of $10,000 per month (could be made for any number of months or none at all). Advertising of $5,000 per month (could be made for any number of months or none at all). (a) Prepare Nash's cash budget for the fourth quarter, considering only required expenditures. Present amounts for each month and for the quarter overall. (a) Prepare Nash's cash budget for the fourth quarter, considering only required expenditures. Present amounts for each month and for the quarter overall. October $ November December COLL $ Quarter Additional Funds Available/(Needed) Beginning Balance Budgeted DM Purchases Budgeted DL and MOH Cost Budgeted SG&A Cost Cash Available Cash Disbursements for Cash Receipts Cash Surplus/(Deficiency) Ending Cash Balance Interest Loan Balance Beginning of Month Loan Balance end of Month Loan Draws/(Payments) Minimum Balance Requirement Total Cash Disbursements 4 $ EA Nash Corp's accounting team is putting together the cash budget for the fourth quarter of the current year. Budgeted cash receipts and cash disbursements for DM are listed below, along with other budgeted costs and additional information. Budgeted cash receipts Budgeted cash disbursements for DM purchases Budgeted DL and MOH cost Budgeted SG&A cost . . ● . ● October $318,000 45,200 137,400 125,700 November $300,000 67,300 145,500 129,400 December $325,000 50,500 150,100 124,000 Beginning cash balance on October 1 is $22,200; minimum required balance is $20,000. Budgeted MOH cost includes $12.400 of depreciation each month. Budgeted SG&A cost includes $13,800 of depreciation each month. A line of credit is available from the bank, subject to a 4% annual interest rate; withdrawals must be made on the first of the month, and repayments must be made on the last day of the month. The withdrawals and repayments must be in $500 increments. If excess cash is available, the following spending priorities have been identified (in order of priority). 1. Equipment purchase of $30,000 (must be made at some point during this quarter with available cash or loan from the bank). N 2. 3. Research and development of $10,000 per month (could be made for any number of months or none at all). Advertising of $5,000 per month (could be made for any number of months or none at all). (a) Prepare Nash's cash budget for the fourth quarter, considering only required expenditures. Present amounts for each month and for the quarter overall. (a) Prepare Nash's cash budget for the fourth quarter, considering only required expenditures. Present amounts for each month and for the quarter overall. October $ November December COLL $ Quarter Additional Funds Available/(Needed) Beginning Balance Budgeted DM Purchases Budgeted DL and MOH Cost Budgeted SG&A Cost Cash Available Cash Disbursements for Cash Receipts Cash Surplus/(Deficiency) Ending Cash Balance Interest Loan Balance Beginning of Month Loan Balance end of Month Loan Draws/(Payments) Minimum Balance Requirement Total Cash Disbursements 4 $ EA