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A company is preparing cash budget for the month of December. it estimate a cassh balance of $8525 at the beginning of the month. the anticipated cash receipts are $154600 and the cash disbursement are $16095. the company requires to maintain a minimum cash balance of $10000. any deficit is loaned from the bank at a simple interest of 1% per month. compute the preliminary cash balance at the end of December before any loan activity?
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A company is preparing cash budget for the month of December. it estim...


Initial Cash Balance:
- Beginning cash balance: $8525

Cash Receipts:
- Anticipated cash receipts: $154600

Cash Disbursements:
- Anticipated cash disbursements: $16095

Minimum Cash Balance:
- Company requires a minimum cash balance of $10000

Calculating Preliminary Cash Balance:
- Preliminary cash balance = Beginning cash balance + Cash receipts - Cash disbursements
- Preliminary cash balance = $8525 + $154600 - $16095 = $149030

Checking Minimum Cash Balance Requirement:
- Preliminary cash balance = $149030
- Minimum cash balance required = $10000

Final Calculation:
- If the preliminary cash balance is greater than the minimum required, then the final cash balance is the same as the preliminary cash balance
- If the preliminary cash balance is less than the minimum required, then the deficit is loaned from the bank at 1% simple interest per month

In this case, since the preliminary cash balance of $149030 is greater than the minimum required cash balance of $10000, the preliminary cash balance at the end of December before any loan activity is $149030.
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A company is preparing cash budget for the month of December. it estimate a cassh balance of $8525 at the beginning of the month. the anticipated cash receipts are $154600 and the cash disbursement are $16095. the company requires to maintain a minimum cash balance of $10000. any deficit is loaned from the bank at a simple interest of 1% per month. compute the preliminary cash balance at the end of December before any loan activity?
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A company is preparing cash budget for the month of December. it estimate a cassh balance of $8525 at the beginning of the month. the anticipated cash receipts are $154600 and the cash disbursement are $16095. the company requires to maintain a minimum cash balance of $10000. any deficit is loaned from the bank at a simple interest of 1% per month. compute the preliminary cash balance at the end of December before any loan activity? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about A company is preparing cash budget for the month of December. it estimate a cassh balance of $8525 at the beginning of the month. the anticipated cash receipts are $154600 and the cash disbursement are $16095. the company requires to maintain a minimum cash balance of $10000. any deficit is loaned from the bank at a simple interest of 1% per month. compute the preliminary cash balance at the end of December before any loan activity? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A company is preparing cash budget for the month of December. it estimate a cassh balance of $8525 at the beginning of the month. the anticipated cash receipts are $154600 and the cash disbursement are $16095. the company requires to maintain a minimum cash balance of $10000. any deficit is loaned from the bank at a simple interest of 1% per month. compute the preliminary cash balance at the end of December before any loan activity?.
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