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GS Cookie Co. forecasts cash receipts for January and February of $9,000 and $10,000, respectively. Cash Payments of $4,000 and $5,000 are expected...

5. GS Cookie Co. forecasts cash receipts for January and February of $9,000 and $10,000, respectively. Cash Payments of $4,000 and $5,000 are expected in these two months. GS Cookie's cash balance at the beginning of January was $5,000, a level that it attempts to maintain. At the beginning of the year, GS Cookie has a $13,000 balance outstanding on its line of credit at the local bank. Based on its cash budget, how much of the line of credit can GS Cookie repay in January and February?

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553559_FIN.doc

GS Cookie Company:
Cash budget:
Cash receipts
Less: Cash Payments
Receipts less payments
Add:Beginning cash balance
Ending cash
balance Jan
$9,000
$4,000
$5,000
$5,000 Feb
$10,000
$5,000
$5,000...

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