PRS company is preparing cash budget for the forthcoming year with the following details:
1st
Quarter
$180,000
$260,000
2nd
Quarter
$330,000
$230,000
3rd quarter
$210,000
$220.000
4th quarter
$230,000
$240,000
Total cash receipts
Total cash disbursements
Cash balance at beginning of the year is $20,000. It is a goal for the company to maintain the minimum cash balance of $10,000 and borrow the funds from local bank as and when required at quarterly interest rate of 3%. The funds can be borrowed at beginning of the quarter and repaid at end of the year. Repayment can be full or part of loan. Interest will be due on principal amount that is repaid.
Ending cash balance of 2nd quarter is:
a. $10,000
b. $35,800
c. $40,000
d. $31,600
Answers
Answered by
3
Answer:
40,000dollars
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Answered by
0
Answer:
999 this is correct answer
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