How much is total cash available for use

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Reference no: EM132947774

Question - Lancer Company's summary of it's budget cash flows is given below:

 

1st Quarter

2nd Quarter

3rd Quarter

4th Quarter

Total receipts

$180,000

$340,000

$230,000

$260,000

Total cash disbursement

$240,000

$270,000

$200,000

$250,000

Beginning cash balance for upcoming fiscal year, $16,000

Minimum cash balance required, $15,000

Interest rate 2% per quarter.

Repay loan at the end of 2nd quarter. Interest is due on any principal at the time it is paid. Interest is not compounded. How much is total cash available for use in the 3rd Quarter?

A. $313,000

B. $355,000

C. $340,000

D. $253,640

Reference no: EM132947774

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