11) The Nichols Company borrowed $12,000 from the bank and agreed to keep $3,000 on deposit at all times. The stated rate of interest on the loan is 10%. What is the real rate of interest?
A) 10%
B) 12%
C) 13.3%
D) 14%
12) A company has a beginning cash balance of $3,000. For the year, the company estimates cash disbursements of $85,900. It has a desired ending cash balance of $5,500 and anticipates no new financing. The estimated cash receipts are:
A) $77,400.
B) $79,900.
C) $82,900.
D) $88,400.
13) The beginning cash balance is $3,000, estimated cash receipts are $105,000, and estimated cash disbursements are $111,000. How much cash must be borrowed to have a desired ending balance of $5,000?
A) $2,000
B) $6,000
C) $5,000
D) $8,000
14) A recent cash budget showed estimated cash receipts of $159,000, estimated cash disbursements of $155,000, and a desired ending cash balance of $6,000, with no borrowing of funds. The beginning cash balance was:
A) $2,000.
B) $4,000.
C) $10,000.
D) unknown.
15) Lori's Company has the following items: cash in a checking account, $1,000; cash in a savings account, $4,000; high-grade government securities due in one month, $3,586; accounts receivable, $3,000; cash in a compensating balance agreement, $3,200. How much should appear as Cash and Cash Equivalents on the balance sheet?
A) $4,000
B) $8,586
C) $11,558
D) $11,786
16) Jim's Company has the following items: cash in a checking account, $1,000; cash in a savings account, $4,000; high-grade government securities due in one month, $3,586; accounts receivable, $3,000; cash pledged as collateral for a loan, $10,000. How much should appear as Restricted Cash on the balance sheet?
A) $5,000
B) $10,000
C) $15,000
D) $18,586
17) In the cash budget, additional financing is needed if:
A) the cash available before new financing exceeds the budgeted cash balance.
B) the budgeted cash balance exceeds the cash available before new financing.
C) the cash used for investing exceeds the budgeted cash balance.
D) the budgeted cash balances exceeds the cash used for investing.
18) In the cash budget, examples of cash disbursements do NOT include:
A) purchase of inventory with cash.
B) payment of operating expenses.
C) payment of dividend.
D) depreciation expense.
19) In the cash budget, the beginning balance Cash plus budgeted cash receipts minus ________, equals Cash available before new financing.
A) budgeted cash disbursements
B) budgeted cash balance
C) cash used for investing activities
D) cash used for investing and financing activities
20) Zeman Company uses a cash budget. The budgeted cash balance is $6,000,000. The company has budgeted cash disbursements of $5,200,000 and budgeted cash receipts of $10,000,000. The beginning balance of cash is $0. What amount of additional financing is required?
A) No additional financing is required.
B) $400,000
C) $800,000
D) $1,200,000