21) Kulvekowski Company uses a cash budget. The beginning cash balance is $1,000,000. The budgeted cash balance is $1,000,000. The company has budgeted cash disbursements of $500,000 and budgeted cash receipts of $1,600,000. What amount of cash is available for investing?
A) $0
B) $600,000
C) $1,000,000
D) $1,100,000
22) Cash and cash equivalents do NOT include:
A) time deposits.
B) petty cash.
C) bank checking account.
D) high-grade U.S. government securities maturing in 5 years.
23) Gia Company has the following information available:
Cash pledged as collateral
|
$1,000,000
|
Cash used for compensating balance for short-term loan
|
$1,000,000
|
Cash used for compensating balance for long-term loan
|
$1,000,000
|
Cash in checking account
|
$100,000
|
What is the amount of Cash to be listed on the balance sheet?
A) $0
B) $100,000
C) $1,000,000
D) $2,000,000
24) Slowinski Company is preparing its cash budget for the upcoming year. It anticipates the following cash receipts and cash disbursements for the year:
Collections from customers$ 999,400
Cash paid for operating expenses360,000
Interest on investments12,000
Sale of machinery for cash45,000
Purchase of inventory for cash407,000
Payment of interest expense14,000
Payment for land75,000
Payment of long-term debt23,000
Using the information above, prepare Slowinski's cash budget for the upcoming year. The cash balance at the beginning of the year is $46,400. The minimum cash balance according to management is $100,000.
25) Nichols Co. has the following information for the second quarter of 2012:
Cash balance, March 31$ 15,000
Sales for April; all cash200,000
Sales for May; all cash300,000
Sales for June; all cash400,000
Cost of Goods Sold is 75% of Sales; all cash
Operating expenses is 10% of Sales; all cash
Purchase a new computer in June with cash 65,000
Interest expense is paid in May40,000
Income taxes paid:
April9,000
May1,500
June18,000
The minimum cash balance for any month is $10,000.
Prepare a cash budget for each month in the second quarter of 2012, showing any excess cash or any financing needed. Any interest on the financing will be deferred until the fiscal year end in December.