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Solved: To December 2017. The Company Has Projected 1. A Company Is Working On A Cash Budget For July The Following Cash Collections And Payments: Collections Payments Month Miscellaneous Expenses Cas

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to December 2017. The company has projected 1. A company is working on a cash budget for July the following cash collections



to December 2017. The company has projected 1. A company is working on a cash budget for July the following cash collections and payments: Collections Payments Month Miscellaneous Expenses Cash Sales Credit Sales Purchases Wages $20,000 $24,000 $15,000 $18,000 July August September October $10,000 $6000 $1,500 $2,000 $2,500 $3,000 $12,000 $7,200 $8,400 $9,600 $28,000 $32,000 $40,000 $50,000 $21,000 $24,000 $30,000 $14,000 $16,000 $20,000 $25,000 November $12,000 $15,000 $4,000 $37,500 $4,500 December a) If the ending cash balance as of June 30, 2017 was $10,000, determine the firm's forecasted monthly cash balance. b) The company wants to know how much they would need to borrow each month if the minimum ending cash balance is $30,000 and the annual interest rate is 7%. Determine the impact on the ending cash balance if the firm uses any cash surplus above the required minimum cash balance to pay off its short-term borrowing monthly. C

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a) July August September October November December Beginning balance $ 10,000 $ 17,500 $ 26,300 $ 36,400 $ 47,800 $

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