Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. help save & exit a cash budget for the first t

Help Save & Exit A cash budget for the first three quarters of Brister Incorporated...

90.2K

Verified Solution

Question

Accounting

image
image
Help Save & Exit A cash budget for the first three quarters of Brister Incorporated is given below 1000 omitted). The company requires a minimum cash balance of at least $5,000 to start each quarter. If necessary, the company will borrow money from its bank to maintain this balance. The company will pay no interest in Quarters 1, 2 and 3. It will repay as much of its borrowings as possible as soon as it has more than $5,000 in cash in a given quarter. Suppose the company starts the first quarter with no bank debt. How much total bank debt does the company expect to have at the end of the third quarter? Cash Budget Quarter (000 omitted) 1 2 3 ? $7 88 87 128 ? ? Cash balance, beginning Add collections from customers Total cash available Less disbursements: Purchase of inventory Selling and administrative expenses Equipment purchases Dividends 55 65 65 45 50 40 8 11 10 2 2 2 ? ? ? ? Total disbursements Excess (deficiency of cash available over disbursements Financing: Borrowings Repayments Total financing Cash balance, ending 7 ? ? ?? 2 Cash balance, ending ? ? ? ? Multiple Choice $6,000 $50,000 $41,000 $15,000 Prey 2 of 15 Next

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Answer BOTH parts of this question: a) There are many wine yeasts and each has its...

Biology
Q

FEEDBACK: A monkey feasts on some sugary fruit. As soon as the first bite of fruit...

Medical Sciences
Q

In a separate file or with pencil and paper answer the question and then submit the...

Economics
Q

A suspension bridge is to be built across valley where it is known that the...

Physics
Q

2 If no solution write DNE log5 9x 9 log 8 3

Basic Math
Q

The vector u is shown in red Drag the blue movable point to construct the...

Algebra
Q

11. Peng Corporation is considering the purchase of new...

Accounting
Q

Question 9.1 What primary factor should a creditor consider when evaluating whether a corporation...

Accounting
Q

Ceder Company has compiled the following data for the upcoming year: Sales are expected...

Accounting
Q

The following partial income statement and balance sheet information (in $ millions) comes from the...

Accounting
Q

Chapter 5- Activity Based Costing St. Francis Healthcare and Dialysis Clinic St. Francis Healthcare and...

Accounting
Q

PLEASE USE EXCEL On December 31,2024, parents decide to accumulate $70,000 to be used...

Accounting