ABC company Bhd provides the following infor mation in respect of its 3 month cash budget for the year 2019 as showrin the table bel ow.• ABC company Bhd currently has a cash balance of RM40,000 and intends to maintain a minimum cash balanceof RM20,000 each monthThe company can barrow at the beginring of the month in which the funds are needed to maintain the minimuncash balance and the interest an loan is 24% per year. The interest an out standing loan is paid in the monththat follows the month in which the loan is dot ained.You are requir ed to complete the 3-month (Oct ober, Novenber, and Decenber) cash budget table for ABCcompany. Note: Provide answers ONLY far cdaured baxes A to NMonthOct oberNovemberDecember1 Beginning cash balanceRM40,000EJNet Change in cash for the period(RM40,200)RV8,604RM12,2403 New financing neededAFK4 Interest an loanВGL5 Loan repaymentHM6 Ending cash balance7Minimumcash balance(RM20,000)(RM20,000)(RV20,000)2.

Minimum balance = Ending balance + Finance taken to maintain a minimum balance

ABC company Bhd provides the falowing inf armation in respect of its 3-month cash budget for the year 2019 as show in the table below. • ABC company Bhd currently has a cash balance of RM40,000 and intends to maintain a minimum cash balano of RM20,000 each month • The company can barrow at the begiming of the month in which the funds are needed to maintain the minimur cash balance and the inter est an loan is 24% per year. The inter est an autstanding loan is paid in the mont that follows the month in which the loan is dbtained. You are required to complete the 3-month (October, November, and Decenber) cash budget table fr ABC company. Note Provide answers ONLY for cdlared boxes AtoN Manth Oct ober November Decenber 1 Beginning cash balance RM40,000 E J 2 Net Change in cash for the period (RM40,200) RV8,604 RM12,240 3 New financing needed A F K 4 nterest an loan G L 5 Loan repayment C H M 6 Ending cash balance D N 7 Minimumcash balance (RM20,000) (RM20,000) (RM20,000)

ABC company Bhd provides the falowing inf armation in respect of its 3-month cash budget for the year 2019 as show in the table below. • ABC company Bhd currently has a cash balance of RM40,000 and intends to maintain a minimum cash balano of RM20,000 each month • The company can barrow at the begiming of the month in which the funds are needed to maintain the minimur cash balance and the inter est an loan is 24% per year. The inter est an autstanding loan is paid in the mont that follows the month in which the loan is dbtained. You are required to complete the 3-month (October, November, and Decenber) cash budget table fr ABC company. Note Provide answers ONLY for cdlared boxes AtoN Manth Oct ober November Decenber 1 Beginning cash balance RM40,000 E J 2 Net Change in cash for the period (RM40,200) RV8,604 RM12,240 3 New financing needed A F K 4 nterest an loan G L 5 Loan repayment C H M 6 Ending cash balance D N 7 Minimumcash balance (RM20,000) (RM20,000) (RM20,000)

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter6: Managing Cash Flow

Section: Chapter Questions

Problem 1EP

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