contestada

17. Patrick Industries makes and sells a product called Product K. Each unit of Product K sells for $24 dollars and has a unit variable cost of $18. The company has budgeted the following data for November: • Sales of $1,152,200, all in cash. • A cash balance on November 1 of $48,000. • Cash disbursements (other than interest) during November of $1,160,000. • A minimum cash balance on November 30 of $60,000. If necessary, the company will borrow cash from a bank. The borrowing will be in multiples of $1,000 and will bear interest at 2% per month. All borrowing will take place at the beginning of the month. The November interest will be paid in cash during November. The amount of cash needed to be borrowed on November 1 to cover all cash disbursements and to obtain the desired November 30 cash balance is:

Respuesta :

alecejas

Answer:

The cash balance at November 30 would be $60,780

Explanation:

cash balance at November 1 is $48,000

+ sales in cash $1,152,200

- Cash disbursements $1,160,000

--------------------------------------------------

without bank loan cash at November 30 would be $40,200 so to reach the minimun balance of cash of $60,000 we must ask for a bank loan of $21,000, for that amount we will have to pay $420 of interest $21,000*.02 (2 % interest monthly) so:

$ 40,200 cash balance witout bank loan

+21,000 bank loan in multiples of $1,000

-420 interest payable during November

------------------------------------------------

$60,780 cash balance at November 30 with bank loan, that amount is above minimun

Otras preguntas