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Business, 16.04.2020 02:04 ralgjl

The following informationis drawn from Royal Industries cash budget

Cash Receipts 40,000
Beg, Cash Bal. 10,000
Cash payment 48,000
Desired ending cash cushion 5,000

If there is a cash shortage, the company borrows money. If a surplus occurs funds are used to repay loans or to invest in short-term assests. All borrowing, repayments, and interest payments occur on the last day of themonth. The interest rate is 1% per month. The amount of interest expense incurred for January is:

a. 20
b. $30
c. $50
d. None of the aove

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Answers: 3

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The following informationis drawn from Royal Industries cash budget

Cash Receipts 40,00...

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