The treasurer for Chic Man Clothing must decide how much money the company needs to borrow in July.The balance sheet for June 30,2010 is presented below:
Chic Man Clothing Balance Sheet
June 30,2010
The company expects sales of $400,000 for July.The company has observed that 25% of its sales is for cash and that the remaining 75% is collected in the following month.The company plans to purchase $345,000 of new clothing.Usually 70% of purchases is for cash and the remaining 30% of purchases is paid in the following month.Salaries are $135,000 per month,lease payments are $35,000 per month,and depreciation charges are $20,000 per month.The company plans to purchase a new van for $60,000 in July and sell its marketable securities for $123,000.If the company must maintain a minimum cash balance of $25,000,how much money must the company borrow in July?

Question

The treasurer for Chic Man Clothing must decide how much money the company needs to borrow in July.The balance sheet for June 30,2010 is presented below:
Chic Man Clothing Balance Sheet
June 30,2010
  The company expects sales of $400,000 for July.The company has observed that 25% of its sales is for cash and that the remaining 75% is collected in the following month.The company plans to purchase $345,000 of new clothing.Usually 70% of purchases is for cash and the remaining 30% of purchases is paid in the following month.Salaries are $135,000 per month,lease payments are $35,000 per month,and depreciation charges are $20,000 per month.The company plans to purchase a new van for $60,000 in July and sell its marketable securities for $123,000.If the company must maintain a minimum cash balance of $25,000,how much money must the company borrow in July?

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The Answer of The treasurer for Chic Man Clothing must decide how much money the company needs to borrow in July.The balance sheet for June 30,2010 is presented below:
Chic Man Clothing Balance Sheet
June 30,2010
  The company expects sales of $400,000 for July.The company has observed that 25% of its sales is for cash and that the remaining 75% is collected in the following month.The company plans to purchase $345,000 of new clothing.Usually 70% of purchases is for cash and the remaining 30% of purchases is paid in the following month.Salaries are $135,000 per month,lease payments are $35,000 per month,and depreciation charges are $20,000 per month.The company plans to purchase a new van for $60,000 in July and sell its marketable securities for $123,000.If the company must maintain a minimum cash balance of $25,000,how much money must the company borrow in July?

The Treasurer for Chic Man Clothing Must Decide How Much