An abbreviated cash budget for Big Chuck Enterprises follows: July August Septem

Question

An abbreviated cash budget for Big Chuck Enterprises follows: July August September Beginning cash balance $ 10,000 $ ? $ ? Add: Cash receipts 50,000 63,000 71,000 Deduct: Cash payments (64,000) (58,000) (64,000) Cash excess (deficiency) before financing $ (4,000) $ ? $ ? Financing Borrowing to maintain minimum balance ? ? ? Principal repayment ? ? ? Interest payment ? ? ? Ending cash balance $ ? $ ? $ ? Big Chuck wants to maintain a $10,000 minimum cash balance at all times. Additional financing is available (and retired) in $1,000 multiples at a 12% interest rate. Assume that borrowings take place at the beginning of the month; retirements, in contrast, occur at the end of the month. Interest is paid at the time of repaying principal and computed on the portion of principal repaid. Find the unknowns in Big Chuck's abbreviated cash budget. Determine the outstanding loan balance as of September 30, after any repayments have been made. I use your answer to check what I.

Explanation / Answer

July August September Opening Balance 10000 10000 10000 Receipts 50000 63000 71000 Payments -64000 -58000 -64000 Excess/ (defeiciency) -4000 15000 17000 Financing/ Borrowing 14000 0 0 Pricipal Repaid -3960 -4901 -5139 Interest Repaid -40 -99 -154 Closing Balance 10000 10000 11707 Please rate the answer as lifesaver for the efforts. Thank u in advance :) God Bless u :)

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