The beginning cash balance is $15000. Sales are forecasted at $800000 of which 80% will be on credit. 70% of credit sales are expected to be collected in the year of sale. Cash expenditures for the year are forecasted at $475000. Accounts Receivable from previous accounting periods totaling $9000 will be collected in the current year. The company is required to make a $15000 loan payment and an annual interest payment on the last day of every year. The loan balance as of the beginning of the year is $90000 and the annual interest rate is 10%.
Instructions
Compute the excess of cash receipts over cash disbursements.

Question

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The Answer of The beginning cash balance is $15000. Sales are forecasted at $800000 of which 80% will be on credit. 70% of credit sales are expected to be collected in the year of sale. Cash expenditures for the year are forecasted at $475000. Accounts Receivable from previous accounting periods totaling $9000 will be collected in the current year. The company is required to make a $15000 loan payment and an annual interest payment on the last day of every year. The loan balance as of the beginning of the year is $90000 and the annual interest rate is 10%.
Instructions
Compute the excess of cash receipts over cash disbursements.

The Beginning Cash Balance Is $15000