Answer:
The completed question is
Haas borrows funds, in increments of $1,000, and repays them on the last day of the month. Repayments may be made in any amount available. The company also pays its vendors on the last day of the month. It pays interest of 1 percent per month in cash on the last day of the month. To be prudent, the company desires to maintain a $16,000 cash cushion.
Cash Budget
October November December
Beginning cash balance
Plus: Cash receipts 157,500 481,500 577,800
Cash available 157,500 481,500 577,800
Less: Payments
For inventory purchases 235,755 364,221 354,588
Selling & Administrative expenses 40,200 62,200 69,400
Purchase of store fixtures 170,000 0 0
Interest expenses 0 3,050 2,554
Total Budgeted payment 445,955 429,471 426,152
Surplus (shortage) (288,455) 52,029 151,648
Financing activity
Borrowing repayment ? ? ?
What is the payment borrowed?
Explanation:
All working forms part of the answer Please note that Amount to be borrowed will be in increments of $ 1,000, BUT it is mentioned that repayments can be made in “ANY AMOUNT”.
