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balance falls below $45,000, the company will borrow against the line of
credit so that the minimum balance can be maintained. If the company
has borrowed against the line of credit and a cash balance is expected to
be above $45,000 at the end of a particular month, then repayments will
be made bringing the cash balance down to $45,000. Interest on the line
of credit is paid monthly. Assume that all line of credit transactions
occur on the last day of the month.
Required:
Prepare a cash budget for the Hale Company for the 2nd quarter of the
year. Include April, May, June, and a quarter total in your budget.
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ACCT 556 Week 6 Homework Problem
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ACCT 556
Week 6 Problem
Proforma Statements
The Duncan Company has just completed a number of budgets for the
coming year. The cost of goods manufactured schedule, the proforma
income statement and the balance sheet still have to be completed. The
following information is available: