Speedy Runner makes running shoes and they have gathered the following data for

Question

Speedy Runner makes running shoes and they have gathered the following data for the month of October: Data Cash on 10/11 $15,300 Expected Cash Collections $435,000 Direct Materials Cash Disbursements $80,000 Direct Labor Cash Disbursements $32,000 MOH Cash Disbursements $25,000 Operating Expenses Cash Disbursements $110,000 Capital Expenditures Cash Disbursements $200,000 Speedy Runner requires an ending cash balance of at least $12,000 and can borrow from a line of credit in $1,000 increments. What is the ending cash balance for October? OA. $9,000 OB. $12,000 OC. $3,300 OD. $12,300

Explanation / Answer

D. $12300 $ Cash as on 10/1 15300 Expected cash collection 435000 Total cash available 450300 Disbursements: Direct material cash disbursements 80000 Direct labor cash disbursements 32000 MOH cash disbursements 25000 Operating expenses cash disbursements 110000 Capital expenditure Cash disbursements 200000 Total cash disbursements 447000 Excess (short) of cash over disbursements 3300 Minimum cash balance required 12000 Shortage of cash (12000-3300) 8700 Borrowings (multiples of 1000) 9000 Ending cash balance (9000+3300) 12300

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.