Answer:
Check the explanation
Explanation:
January
Beginning Cash Balance $1,000
Add: Collection:
December Sale ($5,000*10%) $500
January Cash Sale $6,000
January Credit Sale ($4,000*90%) $3,600
Total Cash Available a $11,100
Cash payment to suppliers b $24,000
Cash deficit before financing a-b $-12,900
Add: Borrowing (Using permutation-comb.) $14,040
Less: Interest Payment $-140
$14,040*12%*1/12
Ending Cash Balance $1,000
