A manufacturer forecasts the following for the month (in $):
200,000 cash collections from customers
120,000 payment to suppliers
50,000 payment to employees
20,000 depreciation on production equipment
Further, the company has a $100,000 note payable at 6% annual interest rate. The company pays interest on a monthly basis. Assume the beginning cash balance for the month is $40,000. What is the projected ending balance for cash?
a. 49,500
b. 50,000
c. 69,500
d. 70,000
e. none of the above
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