Calculate the firm expected ending cash balance

Assignment Help Accounting Basics

Reference no: EM132721760

Question - The closing cash balance of a company at the end of a financial year was $10000. The projected receipts and operating payments for the next six months are given below:

Month	Receipts	Payments
1	16500	19400
2	18300	20800
3	22700	21600
4	29100	24300
5	32500	26700
6	26000	27200

Required -

A. Calculate the firm's expected ending cash balance?

B. If the company should maintain a minimum balance of $9000 and difference is funded through a borrowing how does the borrowing change? Assume loans are not paid.

C. If surplus beyond minimum cash balance is used for repayments and interest payments are settled as the loan is repaid show revised cash balances after repayment assuming interest is paid @ 5% per annum. Assume part payment of loan is not allowed and loans inflows happen on the first day of the month and repayments on the last day of the month.

Reference no: EM132721760

Questions Cloud

Determine the Total Social Security tax : Alfred Morneau earned gross pay of $760. Each period he makes a 401(k) contribution of 3% of gross pay, Determine the Total Social Security tax

Calculate the cost of each capital component-in other words : Calculate the cost of each capital component-in other words, the after-tax cost of debt, the cost of preferred stock (including flotation costs)

What is the amount of manufacturing overhead : The company incurred actual total fixed manufacturing overhead of $517,000. What is the amount of manufacturing overhead

How would you engage in community work with the population : As a Human Services Professional, how would you engage in community work with this population? As a Human Services Professional, how would you engage.

Calculate the firm expected ending cash balance : The closing cash balance of a company at the end of a financial year was $10000. Calculate the firm expected ending cash balance

Develop a customer service training implementation plan : Develop a customer service training implementation plan, including the method of training (for example: presentation, discussion, case study, discovery.

What internal control principles are violated in payroll : What internal control principles are violated in this payroll process? What are the legal and ethical considerations regarding Kim's handling of his payroll

What should the gain be on sale of this investment : Oriole, Inc. acquired 40% of Skysong Corporation's voting stock on January 1, 2021 for $900000. What should the gain be on sale of this investment

What amount should Carla Vista include in income statement : Carla Vista sold half of its stock in Kingbird for $681000 cash. What amount Carla Vista include in its 2021 income statement as a result of the investment

User Account

All Pages