A management accountant was working on a cash budget for Oklahoma Company when he accidentally spilled his coffee.Some of the liquid splattered on his working papers rendering a few of the amounts illegible.The budget with missing amounts indicated is provided below
:
CHANGE NEEDS TO BE MADE TO TABLE
Remove the ",2014" from the heading
The company desires a cash cushion of $7,500 to start each month.In any month in which there is cash shortage the company's bank will extend it a loan equal to the shortage amount.The loan is assumed to have been made on the last day of the month.Any time the company has a cash surplus it must repay as much of any outstanding loans as possible.The bank charges monthly interest of 1% on any outstanding loan balance.
Required:
Compute the missing amounts and enter them in the following table:
Correct Answer:
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