7000 0 10000 repayments 0 0 10000 10000 interest 0 0

This preview shows page 2 - 14 out of 15 pages.

7,000 0 10,000 repayments 0 0 -10,000 -10,000 interest 0 0 -230 -230 total financing 3,000 7,000 -10,230 -230 cash balance, ending 4,350 4,590 4,910 4,910
4. Prepare an absorption costing income statement for the quarter ended June 30.
5. Prepare a balance sheet as of June 30.
nts receivable at March 31 are a result of March credit sales. the following month. The accounts payable at March 31 are the result of March purchases of inventory. ding depreciation), 6% of sales. Assume that these expenses are paid monthly. Depreciation is $900 per mont The company has an agreement with a local bank that allows the company to borrow in increments of $1,000
th (includes depreciation on new assets). at the beginning of each month, up to a total loan balance of $20,000. The interest rate on these loans is 1%
per month and for simplicity we will assume that interest is not compounded. The company would, as far as i
it is able, repay the loan plus accumulated interest at the end of the quarter.

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture