Abbreviated cash budget-financing emphasis

Reference no: EM13756189

Abbreviated cash budget; financing emphasis

An abbreviated cash budget for Big Chuck Enterprises follows.

Big Chuck wishes to maintain a $10,000 minimum cash balance at all times. Additional financing is available (and retired) in $1,000 multiples at a 12% interest rate. Assume that borrowings take place at the beginning of the month; retirements, in contrast, occur at the end of the month. Interest is paid at the time of repaying principal and computed on the portion of principal repaid.

a. Find the unknowns in Big Chuck's abbreviated cash budget.

b. Determine the outstanding loan balance as of September 30, after any repayments have been made.

Reference no: EM13756189

Questions Cloud

What are acts of us government implemented aftr world war ii : What are acts of us government implemented aftr World War II?

Variances for direct materials and direct labor : Banner Company manufactures flags of various countries. Each flag has a standard of eight square feet of fabric and three hours of direct labor time. Information about recent production activity follows.

What advantage did industrial revolution have on environment : What advantage did the industrial revolution have on the environment?

What amount ofgain or loss is recognized by sam : The IBM stock had a $5,000 basis on M Corporation's books. Petertransfers $50,000 in cash for 15% of the M Corporation common stock - What amount ofgain or loss is recognized by Sam and M Corporation on the exchange?

Abbreviated cash budget-financing emphasis : Big Chuck wishes to maintain a $10,000 minimum cash balance at all times. Additional financing is available (and retired) in $1,000 multiples at a 12% interest rate. Assume that borrowings take place at the beginning of the month; retirements, in ..

Write essay on achievements and contribution to modern world : The essay shoyld have a thesis statement. The essay should include their location, organization, political, economic, social, technology, inventions, achievements and contribution to the modern world.

Schedule of cash collections : Sugarland Company sells a single product and anticipates opening a new facility in Charlotte on May 1 of the current year. Expected sales during the first three months of activity are: May, $60,000; June, $80,000; and July, $85,000. Thirty percent..

How french colonization different from spanish and english : How was French colonization different from Spanish and English?

Identify a potential research study : What is a source of nursing research? Identify a potential research study example from that source.

User Account

All Pages