60) Zygot Biotech Company is budgeting for the 3rd quarter, and provide the following data:
Jul
Aug
Sep
Cash collections
$50,000
$40,000
$48,000
Cash payments:
Purchases of inventory
31,000
22,000
18,000
Operating expenses
12,000
9,000
11,600
Capital expenditures
0
19,000
The cash balance at June 30 is projected to be $5,600. There are no financing transactions planned in the 3rd quarter. Please use the format below and prepare the cash budget:
Cash Budget
Beginning cash balance
Cash available
Total cash payments
Ending cash balance
61) AAA Company is preparing its 3rd quarter budget and provides the following data:
Cash balance at June 30 is projected to be $4,000. The company is required to maintain a minimum cash balance of $5,000 and is authorized to borrow at the end of each month to make up any shortfalls. It may borrow in increments of $5,000 and pays interest monthly at an annual rate of 5%. All financing transactions are assumed to take place at the end of the month. Loan balance should be repaid in increments of $5,000 when there is surplus cash.
Using the format below, please complete the cash budget:
Ending cash balance before financing
Minimum cash balance desired
Cash excess/(deficiency)
Financing
Borrowing at end of month
Principal payments at end of month
Interest expense at 5%
Total effects of financing
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