pointy possible
Submit test
You recently began a job as an accounting interm at Raymond Adventures. Your first task was to help prepare the cash budget for February and March. Unfortunately, the computer with the budget file crashed, and you did not have a
backup or even a hard copy. You ran a program to salvage bits of data from the budget file. After entering the following data in the budget, you may have just enough information to reconstruct the budget
View the information on borrowing cash
Read the requirement
Raymond Adventures Ltd.
Cash Budget
February and March
February
March
Beginning cash balance
$\qquad 16,300
Cash collections
$\qquad 79,800
Cash from sale of plant assets
$\qquad 0
$\qquad 2,500
Cash available
$\qquad 108,600
Cash payments
Purchases of inventory
$\qquad 41,600
Operating expenses
$\qquad 47,700
Total payments
$\qquad 98,100
(1) Ending cash balance before financing
$\qquad 25,700
Minimum cash balance desired
$\qquad 23,000
$\qquad 23,000
Cash excess (deficiency)
Financing of cash deficiency
Borrowing (at and of month)
Principal repaymants (al end of month)
Interest expense
(2) Total effects of financing
Ending cash balance (1)+(2)
Borrowing Cash Information
Raymond Adventures eliminates any cash deficiency by borrowing the exact amount needed from
Caisse Populaire, where the current interest rate is 6%. Raymond Adventures pays interest on its
outstanding debt at the end of each month. The company also repays all borowed amounts at the end of
the month as cash becomes available
Print
Done
X
