Question

In: Accounting

X Company has the following budgeted cash flows for January Cash collections    $55,000 Cash Payments...

X Company has the following budgeted cash flows for January

Cash collections    $55,000
Cash Payments
Inventory 17,000
Operating Expenses 13,000
Capital Expenditures 18,000

If the cash balance is $5,000 on January 1 and the company wants to maintain a minimum cash balance of $5,000, what amount can either be invested or used to pay down existing debt for January?

Solutions

Expert Solution

Calculation of Cash to be invested or used to pay down Existing debt of January.

Beginning cash Balance

$          5,000.00

Cash collections

$        55,000.00

Cash Available

$        60,000.00

Cash Payments

Inventory

$        17,000.00

Operating Expenses

$        13,000.00

Capital Expenditures

$        18,000.00

Total Cash Payments

$        48,000.00

Ending Cash Balance

$        12,000.00

Minimum Cash Balance

$          5,000.00

Cash to be invested or used to pay down Existing debt

$          7,000.00

ekkarill92 answered 1 year ago
Next > < Previous

Related Solutions

Budgeted Cash Collections, Budgeted Cash Payments Historically, Ragman Company has had no significant bad debt experience...
Budgeted Cash Collections, Budgeted Cash Payments Historically, Ragman Company has had no significant bad debt experience with its customers. Cash sales have accounted for 20 percent of total sales, and payments for credit sales have been received as follows: 40 percent of credit sales in the month of the sale 35 percent of credit sales in the first subsequent month 20 percent of credit sales in the second subsequent month 5 percent of credit sales in the third subsequent month...
Budgeted Cash Collections, Budgeted Cash Payments Historically, Ragman Company has had no significant bad debt experience...
Budgeted Cash Collections, Budgeted Cash Payments Historically, Ragman Company has had no significant bad debt experience with its customers. Cash sales have accounted for 20 percent of total sales, and payments for credit sales have been received as follows: 40 percent of credit sales in the month of the sale 35 percent of credit sales in the first subsequent month 20 percent of credit sales in the second subsequent month 5 percent of credit sales in the third subsequent month...
Budgeted Cash Collections, Budgeted Cash Payments Historically, Ragman Company has had no significant bad debt experience...
Budgeted Cash Collections, Budgeted Cash Payments Historically, Ragman Company has had no significant bad debt experience with its customers. Cash sales have accounted for 20 percent of total sales, and payments for credit sales have been received as follows: 40 percent of credit sales in the month of the sale 35 percent of credit sales in the first subsequent month 20 percent of credit sales in the second subsequent month 5 percent of credit sales in the third subsequent month...
Newman Medical Clinic has budgeted the following cash flows. January February March   Cash receipts $ 106,000...
Newman Medical Clinic has budgeted the following cash flows. January February March   Cash receipts $ 106,000 $ 112,000 $ 132,000   Cash payments      For inventory purchases 93,000 75,000 88,000      For S&A expenses 34,000 35,000 30,000      Newman Medical had a cash balance of $11,000 on January 1. The company desires to maintain a cash cushion of $5,000. Funds are assumed to be borrowed, in increments of $1,000, and repaid on the last day of each month; the interest rate is 1 percent...
Thornton Medical Clinic has budgeted the following cash flows: January February March Cash receipts $ 116,000...
Thornton Medical Clinic has budgeted the following cash flows: January February March Cash receipts $ 116,000 $ 122,000 $ 142,000 Cash payments For inventory purchases 98,000 80,000 93,000 For S&A expenses 39,000 40,000 35,000 Thornton Medical had a cash balance of $16,000 on January 1. The company desires to maintain a cash cushion of $9,000. Funds are assumed to be borrowed, in increments of $1,000, and repaid on the last day of each month; the interest rate is 2 percent...
Newman Medical Clinic has budgeted the following cash flows. January February March   Cash receipts $ 101,000...
Newman Medical Clinic has budgeted the following cash flows. January February March   Cash receipts $ 101,000 $ 107,000 $ 127,000   Cash payments      For inventory purchases 90,500 72,500 85,500      For S&A expenses 31,500 32,500 27,500      Newman Medical had a cash balance of $8,500 on January 1. The company desires to maintain a cash cushion of $6,000. Funds are assumed to be borrowed, in increments of $1,000, and repaid on the last day of each month; the interest rate is 2 percent...
Your Company purchased equipment that cost $55,000 cash on January of Year One.
Your Company purchased equipment that cost $55,000 cash on January of Year One. The equipment had an expected useful life of six years and an estimated salvage value of $4,000. Your Company depreciates its assets under the straight line method. What is the amount of depreciation expense (Blank) appearing on the Year Four income statement and the amount of accumulated depreciation (Blank) appearing on the Year Four balance sheet?
Budgeted Cash Collections In an effort to improve cash collection, Suburban Medical Clinic offers terms of...
Budgeted Cash Collections In an effort to improve cash collection, Suburban Medical Clinic offers terms of 2/10, n/30, with a 5% discount on patient payments made with cash. Suburban estimates its total billings for the second calendar quarter of the year as follows: April, $200,000; May, $240,000; and June, $290,000. Historically, Suburban has had the following patient collection patterns: Portions of Total Sales In month of sale: Cash at time of sale 25% On account during the discount period 20%...
LockUp Corporation has the following items in the Petty Cash and Cash Collections combined as of...
LockUp Corporation has the following items in the Petty Cash and Cash Collections combined as of as of January 5, 2020 during the checking of Cash for December 31, 2019 balance sheet. a.    Bills and Coins Denomination Bundle of 100 pcs Rolls of 50 coins Loose P 500 1 9 100 2 27 50 3 5 20 5 4 10 10 5 6 4 1 10 20 .25 40 16 b.    Checks Maker Payee Date Amount Baran - Customer LockUp 12/30/2019 P...
Patricia’s housekeeping company has the following data projected for June. Beginning cash balance $24,500 Cash collections...
Patricia’s housekeeping company has the following data projected for June. Beginning cash balance $24,500 Cash collections from customers 36,200 Cash disbursements 54,300 Patricia wants to maintain a cash balance of $10,000 or more. Any amount below this can be borrowed from a local bank as needed in increments of $1,000. All borrowings are made at month end. In Patricia's cash budget for June, how much money will Patricia need to borrow at month end? A. $6,000 B. $5,000 C. $7,000...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT