Payne Companies Refer to Payne Companies

question 99

Multiple Choice

Payne Companies $~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~\text{CACH BUDGET}\\\begin{array}{|l|l|l|l|}\hline &\text{Company A}&\text{Company B}&\text{Company C}\\\hline \text{ Beginning cash balance } & \$ 100 & \$ 300 & \$ 700 \\\hline \text{ Cash collections }& ? & 400 & ? \\\hline \text{ Cash disbursements }& 500 & ? & 600 \\\hline \text{ Cash excess (shortage) }& ? & ? & 400 \\\hline \text{ Borrowing (repayments) } & 300 & 100 & ? \\\hline \text{ Ending cash} & 200 & 200 & 100 \\\hline\\\end{array}$ Refer to Payne Companies.For Company A,what are the budgeted cash collections?

• A)$700
• B)$500
• C)$300
• D)$400

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Definitions:

Interest on Unpaid Balance

The interest charged on the remaining amount of debt that has not been paid off within a given period.

Equal Monthly Payments

Fixed payments made every month, often used in loans or installment plans to repay the principal and interest.

Amortize

The process of gradually paying off a debt over a period through scheduled payments, which may include interest.

Compounded Monthly

Interest on an investment or loan calculated and added to the principal balance on a monthly basis, allowing it to grow at an accelerated rate.