Below are the forecasted receipts and cash payments from Augusta Company for the first four...
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Accounting
Below are the forecasted receipts and cash payments from Augusta Company for the first four months of the year:
January
February
March
April
Budgeted Cash Collections
$243,000
$382,000
$471,000
$605,000
Budgeted Cash Payments:
Operating Expenses
$606,000
$849,000
$803,000
$386,000
Dividends
$229,000
Equipment Purchases
$164,000
Total Budgeted Cash Payments
$606,000
$1,078,000
$967,000
$386,000
On January 1, Augusta Company had a cash balance of$327,000. Augusta Company implemented a new policy this year mandating a cash balance of at least $378,000 at the end of each month and using any surplus to pay down loans.
How much of its outstanding loans must Augusta Company plan to repay in April?
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