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Cash Budgeting Kylles Inc. expects to receive cash from sales of P45,000 in March. In addition, Kylles expects to sell property worth P3,500. Payments for materials and supplies are expected to total P10,000, direct labor payroll will be P12,500, and other expenditures are budgeted at P14,900. On March 1, the cash account balance is P1,230. Required: a. Prepare a cash budget for Kylles Inc. for the month of March. b. Assume that Kylles Inc. wanted a minimum cash balance of P15,000 and that it could borrow from the bank in multiples of P1,000 at an interest rate of 12% per year.
Question 1: What would the adjusted ending balance for March be for Kylles?
Question 2: How much interest would Kylles owe in April, assuming that the entire amount borrowed in March would be paid back?
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