Prepare cash budgets for August, September, and October in side-by-side columns. Show how much cash will be borrowed or repaid each month according to the bank's rules above. Show the loan balance for the end of each month.
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- Checking accounts at a local bank carry an average balance of $30,000. Money stays in the checking accounts for 2 months on average. How many dollars flow through the bank each month on average? (There are twelve months a year.) Group of answer choices $200,000/month $180,000/month $25,000/month $15,000/month $10,000/monthBridgette Inc. maintains a cash buffer for unexpected cash outlays for the year amounting to 3,000. Bank of Wildcats charges Bridgette P15 for every transaction with the bank. The bank grants 5% annual interest. Bridgette is contemplation if it will still need to have the cash buffer. 1.How much is the annual savings in annual holding cost of cash for Bridgette if it will not have a cash buffer?Cash flow of accounts receivable. Myers and Associates, a famous law firm in California, bills its clients on the first of each month. Clients pay in the following fashion: 40% pay at the end of the first month, 30% pay at the end of the secondmonth, 20% pay at the end of the third month, 5% pay at the end of the fourth month, and 5% default on their bills. Myers wants to know the anticipated cash flow for the first quarter of 2015 if the past billings and anticipated billings follow this same pattern. The actual and anticipated billings are as follows: Fourth Quarter Actual Billings First Quarter Anticipated Billings Oct. Nov. Dec. Jan. Feb. Mar. $316,000 $253,000 $235,000 $266,000 $288,000 $315,000 What is the anticipated cash flow for February of 2015 if past billings and anticipated billings follow this same pattern? (Round to the nearest dollar.)
- You have a balance of $5,000 on your credit card, which charges an interest rate of 1.3% per month. Looking at your budget, you figure you can make the following payments. Will they be enough to pay off your credit card? Month 1 3 4 7 8 Рayment $485 $550 $615 $680 $745 $810 $875 $940 ..... (Select from the drop-down menus.) The present value of your payments is the amount of the loan, so you be able to pay off the loan.You are looking for a bank in which to open a checking account for your new part-time business. You estimate that in the first year, you will be writing 30 checks per month and will make three debit transactions per month. Your average daily balance is estimated to be $900 for the first six months and $2,400 for the next six months. Use the following information to solve the problem. Bank Monthly Fees and Conditions Bank 1 $16.00 with $1,000 min. daily balance-or-$25.00 under $1,000 min. daily balance Bank 2 $4.50 plus $0.40 per check over 10 checks monthly$1.00 per debit transaction Bank 3 $5 plus $0.25 per check$2.00 per debit transaction Bank 4 $8 plus $0.15 per check$1.50 per debit transaction (a) Calculate the cost (in $) of doing business with each bank for a year. Bank 1 Bank 2 Bank 3 Bank 4 (b) Which bank should you choose for your checking account? Bank 1 Bank 2 Bank 3 Bank 4K Cash flow of accounts receivable. Myers and Associates, a famous law firm in California, bills its clients on the first of each month. Clients pay in the following fashion: 40% pay at the end of the first month, 30% pay at the end of the second month, 20% pay at the end of the third month, 5% pay at the end of the fourth month, and 5% default on their bills. Myers wants to know the anticipated cash flow for the first quarter of 2015 if the past billings and anticipated billings follow this same pattern. The actual and anticipated billings are as follows: Click on the icon in order to copy its content into a spreadsheet Fourth Quarter Actual Billings Oct. $421,000 Nov. $334,000 Dec. $305,000 First Quarter Anticipated Billings Jan. $370,000 Feb. $399,000 Mar $447,000 What is the anticipated cash flow for January of 2015 if past billings and anticipated billings follow this same pattern? (Round to the nearest dollar)
- and cash payments (excluding cash payments for loan principal and interest payments) for the first three months of next year. January February March Cash Receipts Cash payments $ 517,000 409,500 480,000 $ 459,400 351,900 524,000 Kayak requires a minimum cash balance of $40,000 at each month-end. Loans taken to meet this requirement charge 1%, interest per month, paid at each month-end. The interest is computed based on the beginning balance of the loan for the month. Any preliminary cash balance above $40,000 is used to repay loans at month-end. The company has a cash balance of $40,000 and a loan balance of $80,000 at January 1. Prepare monthly cash budgets for January, February, and March. (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign.) Answer is complete but not entirely correct. KAYAK COMPANY Beginning cash balance Add: Cash receipts Cash Budget January February March SA 40,000 $ 40,000 $ 74,168 517,000 409,500 480,000 557,000 449,500…AB Ltd has a petty cash account that is set at $8,400. In month 1 the month end replenishment is for 20% of the fund. In month 2 the month end replenishment is for 25% of the fund and in month 3 the fund size is increased by $3,800 and the replenishment is for 22% of the fund level. Required: How much is the highest monthly expense from replenishment? $Sparks Corporation has a cash balance of $18,900 on April 1. The company must maintain a minimum cash balance of $15,500. During April, expected cash receipts are $67.000. Cash disbursements during the month are expected to total $80.500. Ignoring interest payments, during April the company will need to borrow: Multiple Cholce O $10:100 $5.400 $13.500 $15.500
- Karim Corp. requires a minimum $9,000 cash balance. Loans taken to meet this requirement cost 1% interest per month (paid monthly). Any excess cash is used to repay loans at month-end. The cash balance on July 1 is $9,400, and the company has no outstanding loans. Forecasted cash receipts (other than for loans received) and forecasted cash payments (other than for loan or interest payments) follow. July August September Cash receipts $ 25,000 $ 33,000 $ 41,000 Cash payments 29,500 31,000 33,000 Prepare a cash budget for July, August, and September. (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign. Round your final answers to the nearest whole dollar.) KARIM CORP. Cash Budget For July, August, and September July August September Beginning cash balance $9,400 Total cash available Preliminary cash balance Ending cash…When he became the president of Jem Incorporated, John Smith changed the date of the weekly payday from the end of the day on Monday to the end of the day on Friday. The company has a weekly payroll of $10 million, and the cost of short-term funds was 13%. If this change delayed check clearing by 1 week, what annual savings were realized? Use the information below for the next two problems. Schlitz Inc. has obtained a 90-day bank loan of $10,000 with an annual interest rate of 15%, payable at maturity. Assume a 365-day year.Receivables and Cash: Collection FloatA firm has daily cash receipts through checks. On average 150 checks are received per day while each check has an averagevalue of P2,500. It takes an average of 3 days for the bank to clear the checks. A bank has offered to decrease the clearingperiod to one day for a monthly fee of P500. The bank gives an interest rate of 3% per year.Required:19. How much would ABC receive as total annual interest on the freed cash?20. How much is the annual cost of the service?21. What is the annual net benefit or (loss) from having this service?