The beginning cash balance is $20,000 Sales are forecasted at $800,000 of which 80% will be on credit 70% of credit sales are expected to be collected in the year of sale. Cash expenditures for the year are forecasted at $500,000. Accounts receivable from previous accounting periods totaling $12,000 will be collected in the current year. The company is required to make a $20,000 loan payment and an annual interest payment on the last day of the year. The loan balance as of the beginning of the year is $120,000, and the annual interest rate is 10%.

How much will be reported as 'cash' on the budgeted balance sheet?

 

Answer rating: 100% (QA)

Solution Cash Balance on Budgeted Balance Sheet Cash Balance Opening ... View the full answer