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Surplus of cash before considering cash borrowed

Information for June:

cash receipts                         $542,000
beginning cash balance              10,000
cash payments                        560,000
desired ending cash balance       50,000

If there is shortage, the company borrows money from the bank. All cash is borrowed at the beginning of the month at $10,000 increments and interest is paid monthly at 1% on the first day of the following month. The company had no debt before June 1st. The shortage or surplus of cash before considering cash borrowed in June would be...?

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Solution Preview :

Prepared by a verified Expert

Accounting Basics: Surplus of cash before considering cash borrowed

Reference No:- TGS01738623

Have a Question? (oR Write a Review)

Recent Questions Asked Accounting Basics

Q : Internal service fund to establish the new fund

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Solution Preview :

Prepared by a verified Expert

Accounting Basics: Surplus of cash before considering cash borrowed

Reference No:- TGS01738623

Recent Questions Asked Accounting Basics

Q : Internal service fund to establish the new fund

Q : Deferred tax liability-current

Q : Differences between variable and absorption costing

Q : Total cash-inflows from the collection of receivables

Q : Surplus of cash before considering cash borrowed

Q : Investment in new equipment

Q : Accounting period faux line

Q : Non-push-down accounting

Q : Completing any tax planning for a corporation

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