Snow Mountain Resort had a beginning cash balance of $16,200 for the quarter.During the quarter,the firm had cash collections of $338,910,wages and other cash expenses of $187,900,payments on account of $67,400,and paid dividends of $4,500.The minimum cash balance was just set to $2,500.The beginning short-term debt is $45,400 with a quarterly interest rate of 1.5 percent.At quarter end,the cumulative surplus (deficit)is _____ and the ending short-term debt is ________.

Question

Quizplus · Accepted Answer

Quarterly interest on debt = .015 × $45,400 = $681Funds available for debt repayment = $16,200 + 338,910 - 187,900 - 67,400 - 4,500 - 681 - 2,500 = $92,129Cumulative surplus (deficit)= $16,200 + 338,910 - 187,900 - 67,400 - 4,500 - 681 - 45,400 - 2,500 = $46,729Ending short-term debt = $45,400 - 45,400 = $0

Snow Mountain Resort Had a Beginning Cash Balance of $16,200