The following budget estimates have been prepared by Flowers Company: Cash Receipts Cash Payments $220,000 400,000...

 

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The following budget estimates have been prepared by Flowers Company: Cash Receipts Cash Payments $220,000 400,000 319,800 January February March $220,000 380,000 320,000 The company likes to maintain a minimum cash balance of $50,000. If additional cash is needed, the company has a line of credit at 12 percent interest with the local bank. Interest will have to be paid at the end of each month. Assume a cash balance on January 1 of $50,000. Required: Prepare a cash budget for each of the first three months of the year Cash Budget CASH AVAILABLE: BEGINNING CASH BALANCE CASH COLLECTION TOTAL CASH AVAILABLE CASH NEEDED: PAYMENTS INTEREST ON LOAN DESIRED CASH BALANCE TOTAL CASH NEEDED SURPLUS/(DEFICIT) FINANCING: BORROW EFFECT ENDING CASH BALANCE January (Ringgit $) February March The following budget estimates have been prepared by Flowers Company: Cash Receipts Cash Payments $220,000 400,000 319,800 January February March $220,000 380,000 320,000 The company likes to maintain a minimum cash balance of $50,000. If additional cash is needed, the company has a line of credit at 12 percent interest with the local bank. Interest will have to be paid at the end of each month. Assume a cash balance on January 1 of $50,000. Required: Prepare a cash budget for each of the first three months of the year Cash Budget CASH AVAILABLE: BEGINNING CASH BALANCE CASH COLLECTION TOTAL CASH AVAILABLE CASH NEEDED: PAYMENTS INTEREST ON LOAN DESIRED CASH BALANCE TOTAL CASH NEEDED SURPLUS/(DEFICIT) FINANCING: BORROW EFFECT ENDING CASH BALANCE January (Ringgit $) February March

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To prepare the cash budget for each of the first three months well calculate the cash available cash ... View the full answer