How much cash will DeanDeanborrow in February if collections from customers that month total $34,000 instead of $54,000?
If cash collections are $34,000 instead of $54,000in February,the company will borrow $_______ and repay $________
Assume Dean Consulting began January with $8,000 cash. Management forecasts that cash
receipts from credit customers will be $51,000 in January and $54,000 in February. Projected
cash payments include equipment purchases ($22,000 in January and $38,000 in February) and
selling and administrative expenses ($8,000 each month). Dean's bank requires a 32,000
minimum balance in the firm's checking account. At the end of any month when the account
balance falls below $32,000, the bank automatically extends credit to the firm in multiples of
$5,000. Dean borrows as little as possible and pays back loans each month in $1,000
increments, plus 12% interest on the entire unpaid principal. The first payment occurs one
month after the loan.
Prepare Dean Consulting's cash budget for January and February, 2016.
How much cash will Dean borrow in February if collections from customers that month total
34,000 instead of $54,000
Beginning cash balance
Selling and administrative expenses
Total cash payments
Ending cash balance before
Minimum cash balance desired
Projected cash excess (deficiency)
Total effects of Âfinancing
Ending cash balance
For January February and then total.
This question was answered on: Oct 15, 2019Buy this answer for only: $15
This attachment is locked
Pay using PayPal (No PayPal account Required) or your credit card . All your purchases are securely protected by .
About this QuestionSTATUS
Oct 15, 2019EXPERT
YES, THIS IS LEGAL
We have top-notch tutors who can do your essay/homework for you at a reasonable cost and then you can simply use that essay as a template to build your own arguments.
You can also use these solutions:
- As a reference for in-depth understanding of the subject.
- As a source of ideas / reasoning for your own research (if properly referenced)
- For editing and paraphrasing (check your institution's definition of plagiarism and recommended paraphrase).
NEW ASSIGNMENT HELP?
Order New Solution. Quick Turnaround
Click on the button below in order to Order for a New, Original and High-Quality Essay Solutions. New orders are original solutions and precise to your writing instruction requirements. Place a New Order using the button below.
WE GUARANTEE, THAT YOUR PAPER WILL BE WRITTEN FROM SCRATCH AND WITHIN A DEADLINE.