The Beginning Cash Balance Is $20000

question 206

Essay

The beginning cash balance is $20000. Sales are forecasted at $700000 of which 80% will be on credit. 70% of credit sales are expected to be collected in the year of sale. Cash expenditures for the year are forecasted at $500000. Accounts receivable from previous accounting periods totaling $12000 will be collected in the current year. The company is required to make a $20000 loan payment and an annual interest payment on the last day of the year. The loan balance as of the beginning of the year is $120000 and the annual interest rate is 10%.
Instructions
How much will be reported as 'cash' on the budgeted balance sheet?

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Definitions:

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A voice box located in the throat responsible for producing sound.

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