Motors Corporation manufactures motors for det bakes. The company requires a manamum $30,000 cash balance at each month end. If necessary, the company borrows to meet this requirement at a cost of 2% anterest per month paid at the end of each month Any preliminary cash balance above $30,000 at month-end is used to repay loans. The cash balance on July 1 is $26,000, and the company has no outstanding loans Budgeted cash receipts and budgeted cash payments (other than for interest on the loan and loan activity) follow Cash receipts Cash payments $191,000 $ 147,000 Prepare a cash budget for July, August, and September (Negative belances and Loan repayment amounts of any) should be Indicated with minus sign. Round your final answers to the nearest whole dollar) $77,000 105,000 Beginning cash balance Total cash available Total cash payments Preliminary cash balance Additional loan (loan repayment) Ending cash balance Loan activity oan balance, beginning of Month MOTORS CORPORATION Cash Budget July August

Motors Corporation manufactures motors for det bakes. The company requires a manamum $30,000 cash balance at each month end. If necessary, the company borrows to meet this requirement at a cost of 2% anterest per month paid at the end of each month Any preliminary cash balance above $30,000 at month-end is used to repay loans. The cash balance on July 1 is $26,000, and the company has no outstanding loans Budgeted cash receipts and budgeted cash payments (other than for interest on the loan and loan activity) follow Cash receipts Cash payments $191,000 $ 147,000 Prepare a cash budget for July, August, and September (Negative belances and Loan repayment amounts of any) should be Indicated with minus sign. Round your final answers to the nearest whole dollar) $77,000 105,000 Beginning cash balance Total cash available Total cash payments Preliminary cash balance Additional loan (loan repayment) Ending cash balance Loan activity oan balance, beginning of Month MOTORS CORPORATION Cash Budget July August

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter17: The Management Of Cash And Marketable Securities

Section: Chapter Questions

Problem 10P

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and cash payments (excluding cash payments for loan principal and interest payments) for the first three months of next year. January February March Cash Receipts Cash payments $ 517,000 409,500 480,000 $ 459,400 351,900 524,000 Kayak requires a minimum cash balance of $40,000 at each month-end. Loans taken to meet this requirement charge 1%, interest per month, paid at each month-end. The interest is computed based on the beginning balance of the loan for the month. Any preliminary cash balance above $40,000 is used to repay loans at month-end. The company has a cash balance of $40,000 and a loan balance of $80,000 at January 1. Prepare monthly cash budgets for January, February, and March. (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign.) Answer is complete but not entirely correct. KAYAK COMPANY Beginning cash balance Add: Cash receipts Cash Budget January February March SA 40,000 $ 40,000 $ 74,168 517,000 409,500 480,000 557,000 449,500…
A washer-dryer combination can be purchased from a department store by making monthly credit card payments of $37.17 for three-and-a-half years. The first payment is due on the date of sale and interest is 15% compounded monthly. (a) What is the purchase price? (b) How much will be paid in installments? (c) How much is the cost of financing? (d) If an additional $8.00 per month is added to cover a service contract, what is the value of the entire contract on the date of sale? a) The purchase price is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) b) The amount paid in installments will be $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) c) The cost of financing is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) d) The value of the entire contract on the date of sale is S
Mike's Motors Corp. manufactures motors for dirt bikes. The company requires a minimum $30,000 cash balance at each month-end. If necessary, the company borrows to meet this requirement, at a cost of 2% interest per month (paid at the end of each month). Any cash balance above $30,000 at month-end is used to repay loans. The cash balance on July 1 is $42,000, and the company has no outstanding loans at that time. Forecasted cash receipts and forecasted cash payments (other than for loan activity) are as follows. Cash Cash Receipts $ 93,000 July August September Payments $121,000 107,900 135,400 119,000 158,000 Prepare a cash budget for July, August, and September. (Negatlve balances and Loan repayment amounts (If any) should be Indicated with mlnus sign. Round your final answers to the nearest whole dollar.) Answer is complete but not entirely correct. MIKE'S MOTORS CORP. Cash Budget For July, August, and September July August September S 30,000 Beginning cash balance Cash receipts…
Scrimiger Paints wants to upgrade its machinery and on September 20 takes out a loan from the bank in the amount of $500,000. The terms of the loan are 2.9% annual interest rate and payable in 8 months. Interest is due in equal payments each month. Compute the interest expense due each month. Show the journal entry to recognize the interest payment on October 20, and the entry for payment of the short-term note and final interest payment on May 20. Round to the nearest cent if required.
Ms. Wadeson obtained a $15,000 demand loan from TD Canada Trust on May 23 to purchase a car. The interest rate on the loan was prime plus 2%. The loan required payments of $700 on the fifteenth of each month, beginning June 15. The prime rate was 4.5% at the outset, dropped to 4.25% on July 26, and then jumped by 0.5% on September 14. Prepare a loan repayment schedule showing the details of the first four payments.
On March 1, Minnerly Motors obtains a business loan from a local bank. Theloan is a $25,000 interest-only loan with a nominal rate of 11%. Interest iscalculated on a simple interest basis with a 365-day year. What is Minnerly’sinterest charge for the first month (assuming 31 days in the month)?
A print shop borrows $2900 from a credit union for 231 days. The credit union charges simple interest at an annual rate of 8.25% for this loan. Assume each day is of a year. Answer each part below. 365 Do not round any intermediate computations, and round your final answers to the nearest cent. If necessary, refer to the list of financial formulas. (a) Find the interest that will be owed after 231 days. $0 (b) Assuming the print shop doesn't make any payments, find the amount owed after 231 days. ? 2 B 4
A washer-dryer combination can be purchased from a department store by making monthly credit card payments of $56.55 for three-and-a-half years. The first payment is due on the date of sale and interest is 15% compounded monthly. (a) What is the purchase price? (b) How much will be paid in installments? (c) How much is the cost of financing? (d) If an additional $8.50 per month is added to cover a service contract, what is the value of the entire contract on the date of sale? a) The purchase price is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) b) The amount paid in installments will be $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) c) The cost of financing is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) d) The value of the entire contract on the date of sale is $…
Mel's Photography borrowed $15 OOO on March 10 on a demand note. The loan was repaid by payments of $4000 on June 20, $3000 on September 1, and the balance on November 15. Interest, calculated on the daily balance and charged to Mel's Photography current account on the last day of each month, was at 5.5% on March 10 but was changed to 6.25% effective June 1 and to 6% effective October 1. How much did the loan cost?
Assume that you start with a balance of $3900 on your credit card.During the first month you charge $400. During the second month you charge $650 and make a payment of $280. Assume that your credit card charges a 29% APR and each month you make the minimum payment of 2.5% of the balance. Complete the following table. Round your answer to the nearest cent. Month 1 Previous balance- $3900 Finance charge- $94.25 Purchase- 400 Payment ?97.50 New balance? Month 2 Previous balance- finance charge- purchase- payments- New balance
Melody Dairy has a line of credit with its bank. The firm plans to borrow $400,000 at a rate of 10 percent. The bank requires a 15% compensating balance and the firm currently maintains $20,000 in its account at the bank that can be used to meet the compensating balance requirement. Determine the annual finance cost to Melody of this loan.
Prime Products hopes to borrow $73,000 on April 1 and repay it plus interest of $1,080 on June 30. The following data are available for the months April through June, during which the loan will be used: On April 1, the start of the loan period, the cash balance will be $41,800. Accounts receivable on April 1 will total $182,000, of which $156,000 will be collected during April and $20,800 will be collected during May. The remainder will be uncollectible. The company estimates 30% of a month's sales are collected in the month of sale, 60% in the month following sale, and 8% in the second month following sale. The other 2% are bad debts that are never collected. Budgeted sales and expenses for the three-month period follow: April May June Sales (all on account) $316,000 $575,000 $264,000 Merchandise purchases $214,000 $193,000 $ 151,500 Payroll $ 34,200 $ 34,200 $27,300 Lease payments $31,600 $31,600 $ 31,600 Advertising $ 74,000 $ 74,000 $ 43,000 Equipment purchases $70,500 Depreciation…