Unformatted text preview: All other variable expenses are 4% of sales. Property taxes, and miscellaneous payroll and other items are $55,000 monthly. Depreciation is $2,500 monthly. In June, $55,000 is going to be disbursed for fixtures acquired on account in May. The beginning cash balance is $29,000. A minimum cash balance of $25,000 is to be maintained. All borrowings and repayments of principal are made in multiples of $1,000. Borrowings occur at the beginning of the month. Repayments are made at the end of the month of repayment. Interest is compounded and added to the outstanding balance each month, but interest is paid only at the end of month when any principal is repaid. The interest rate is 10% per annum. Round interest computations to the nearest dollar....
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This note was uploaded on 01/05/2012 for the course 101 melissa jo taught by Professor Acc101 during the Spring '11 term at Aarhus Universitet.
- Spring '11