Ask Question
5 May, 21:32

Blake Company has $15,000 cash at the beginning of June and anticipates $50,000 in cash receipts and $34, 500 in cash disbursements. Blake Company requires a minimum cash balance of $10,000 and maintains no more than $20,000 on hand. Any excess cash over the maximum is used to pay down debts. The firm has an agreement with its bank to borrow as needed or repay loans as funds become available. As of May 31, the company owes $15,000 to the bank. The balance of the loan on June 30 will be:

a. $19, 500

b. $9, 500

c. $15,000

d. $4, 500

+2
Answers (1)
  1. 5 May, 22:10
    0
    balance of the loan = $4500

    correct option is d. $4, 500

    Explanation:

    given data

    cash at the beginning = $15,000

    cash receipts = $50,000

    cash disbursements = $34, 500

    minimum cash balance = $10,000

    maintains = $20,000

    company owes = $15,000

    to find out

    balance of the loan

    solution

    we get here first excess that is

    excess = $15,000 + $50,000 - $34, 500

    excess = $30500

    so used to loan replay will be here as

    used to loan replay = $30500 - $20,000

    used to loan replay = $10500

    so balance of loan will be here

    balance of the loan = $15,000 - $10500

    balance of the loan = $4500

    correct option is d. $4, 500
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Blake Company has $15,000 cash at the beginning of June and anticipates $50,000 in cash receipts and $34, 500 in cash disbursements. Blake ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers