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The beginning cash balance is $15,000. Sales are forecasted at $800,000 of which 80% will be...

The beginning cash balance is $15,000. Sales are forecasted at $800,000 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 $475,000. Accounts Receivable from previous accounting periods totaling $9,000 will be collected in the current year. The company is required to make a $15,000 loan payment and an annual interest payment on the last day of every year. The loan balance as of the beginning of the year is $90,000, and the annual interest rate is 10%.

Instructions
Compute the excess of cash receipts over cash disbursements.

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Answer #1
Cash receipts:
Cash sales (800000*20%) 160000
Collection from previous year's receivables 9000
Collection from current year's receivables (800000*80%*70%) 448000
Total receipts 617000
Total cash available 632000
Cash disbursements:
Cash expenditure 475000
Interest payment (90000*10%) 9000
Loan repayment 15000
Total disbursements 499000
Excess of cash receipts over cash disbursements 133000 Answer
Add: Beginning cash balance 15000
Ending cash balance 148000
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