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Rina8888 [55]
3 years ago
14

Madison Corporation’s expected beginning cash balance is $35,000. Cash collections are budgeted at $50,000 and cash disbursement

s are estimated to be $80,000. The minimum required cash balance is $20,000 and the company can borrow as much as needed in increments of $10,000. Calculate the expected ending cash balance for the month.
Business
1 answer:
steposvetlana [31]3 years ago
4 0

Answer:

$25,000

Explanation:

The cash balance for Madison's Corporation is:

= beginning balance + cash collections - cash disbursements

= $35,000 + $50,000 - $80,000 = $5,000

Since Madison can borrow money in $10,000 increments, they need to borrow $20,000 to be able to meet the minimum cash balance.

So their expected ending cash balance is = $5,000 + $10,000 + $10,000 = $25,000

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Answer:

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Explanation:

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3 years ago
in preparing a statement of cash flows under the indirect method, an increase in accounts payable would be reported or included
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Answer:

In preparing a statement of cash flows under the indirect method, an increase in accounts payable would be reported or included as a(n):

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3 years ago
aagen Inc. is a merchandising company. Last month the company's cost of goods sold was $92,000. The company's beginning merchand
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Answer:

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1-Nov     Cash Dividends                             $42,000

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1-Dec      No entry on this date

31-Dec     Dividends Payable                     $42,000  

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