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Zarrin [17]
3 years ago
8

Howard ​Services, Inc., has $ 8 comma 600 cash on hand on January 1. The company requires a minimum cash balance of $ 7 comma 60

0. January cash collections are $ 548 comma 570. Total cash payments for January are $ 567 comma 610. Prepare a cash budget for January. How much​ cash, if​ any, will Howard need to borrow by the end of January​?
Business
1 answer:
skad [1K]3 years ago
6 0

Answer:

The amount of cash to be borrowed = $18,040

Explanation:

The cash budget shows the expected cash payments and expected cash receipts and cash balance at the end of a particular period.

Note that in the cash budget only items of the cash are considered, therefore items like depreciation, amortization of intangible assets and apportionment of fixed costs are not included because they are not cash based.

The balance at the end = opening cash balance + cash receipts -cash payment  

Applying this to Howard ​Services, Inc.

The amount of cash to be borrowed = Minimum cash balance required - Net cash balance

DATA

Opening cash balance - 8600

Cash receipts- 548,570

Cash payment - 567,610

Net cash balance = 8600 + 548,570 - 567,610 = (10,440)

The amount of cash to be borrowed = 7,600 - (10,440)

                                                               =7,600+10,440=18040

The amount of cash to be borrowed = $18,040

<em>Note a negative amount of 10,400 would mean that that would be first borrowed to balance the deficit, and to take the balance to the minimum required cash balance, an addition 7,600 would need to be borrowed</em>.

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This is a form of insurance policy that that is designed to pay off the balance on a policy holder's outstanding loan in case of death. It is designed for the protection of lender and heirs who are co signers from loss in case of the death of the borrower.

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Why do many companies find that providing employees a comprehensive benefits package that includes insurance, retirement investm
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Explanation:

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Which of the following most accurately describes one of the powers of stock holdiers
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5 0
3 years ago
Acheson Corporation, which applies manufacturing overhead on the basis of machine-hours, has provided the following data for its
ololo11 [35]

Answer:

Allocated MOH= $165,240

Explanation:

Giving the following information:

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Estimated machine-hours 4,640

Actual manufacturing overhead $157,400

Actual machine-hours 4,860

First, we need to calculate the predetermined manufacturing overhead rate:

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Estimated manufacturing overhead rate= 157,750/4,640= $34 per machine hour

Now, we can calculate the allocated overhead:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 34*4,860= $165,240

5 0
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Sav [38]

Answer:

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Explanation:

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Using this formula

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Incremental cost=$37-$28.5

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Therefore the net incremental cost or savings of buying the component is $8.50

3 0
3 years ago
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