Question

If there is a cash shortage, the company borrows money from the bank. All cash is borrowed at the beginning of the month in $1,000 increments, and interest is paid monthly at 1% on the first day of the following month. The company had no debt before June 1. The amount of interest paid on July 1 would be

Answer 1

Answer:29,000

Step-by-step explanation:Bantam Industries has budgeted the following information for March:

Cash receipts $ 271,000

Beginning cash balance 5,000

Cash payments 280,000

Desired ending cash balance 25,000