Question

Simon the pieman bakery is budgeting cash for 2017. the cash balance at december​ 31, 2016​, was $ 14 comma 000. simon the pieman bakery budgets 2017 cash receipts at $ 80 comma 000. estimated cash payments include $ 42 comma 000 for​ inventory, $ 32 comma 000 for operating​ expenses, and $ 17 comma 000 to expand the store. simon the pieman bakery needs a minimum cash balance of $ 6 comma 000 at all times. simon the pieman bakery expects to earn net income of $ 75 comma 000 during 2017. what is the final result of the​ company's cash budget for 2017​?

Answer 1

Beginning Cash Balance 14000

Add: Cash Reciepts 80000

Total Reciepts 94000

Less: Inventory Purchased (42000)

Less: Administrative Expenses (32000)

Less: Cost of Expansion (17000)

Cash Balance at the end 3000

Add: Loan Taken for maintaining Min Bal 3000

Cash Balance 6000