Accounting

posted by .

Carpaitha Inc began 2009 with $140,000 in cash. The company plans to have $1,400,000 accrual basis sales revenue during the year, of which it plans to collect 80% in 2009 and the other 20% in 2010. The company plans to record the following expenses in 2009:

various operating expenses all paid during 2009... $1,050,000
depreciation expense....$105,000
interest expense paid on October 1, 2009....$25,000
interest expense accrued on December 31 2009....$12,500

Finally, the company plans on making a $100,000 dividend payment in July and on prepaying its 2010 factory insurance bill of $40,000 in December 2009.

What is Carpathia's December 31, 2009, budgeted cash balance?

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. accrual basis accounting vs. cash accounting basis

    Can someone please check my answers to the following problem. Jack Eagles, a CPA, keeps his accounting records for his practice on the cash basis. During the current year, his clients paid $750,000 in the accounting and tax fees of …
  2. accounting

    O'Hara Inc. made sales of $310,000 during 2008, it's first year of operations. Of this, $15,000 remained in accounts receivable at the end of the year. Additionally, the company paid and incurred $270,000 in expenses during the year. …
  3. Accounting

    Ferguson Company was started in 2008 when it acquired $60,000 from the issue of common stock. The following data summarize the company's first years' operating activities. Assume that all transactions were cash transactions. 2008 2009 …
  4. Advanced accounting

    Up owns 80% of Down. During 2009 Down began selling merchandise to Up at gross profit margin of 20%. Sales by Down to Up for the year totaled $80,000, of which $10,000 remain unsold. In 2010 Down sold $100,000 merchandise to Up at …
  5. accounting

    Lily Company had the following assets and liabilities on the dates indicated. December 31 Total Assets Total Liabilities 2009 $400,000 $250,000 2010 $460,000 $300,000 2011 $590,000 $400,000 Lily began business on January 1, 2009, with …
  6. accounting

    E15-7 Bennis Company has the following comparative balance sheet data. BENNIS COMPANY Balance Sheets December 31 2009 2008 Cash $ 15,000 $ 30,000 Receivables (net) 70,000 60,000 Inventories 60,000 50,000 Plant assets (net) 200,000 …
  7. accounting

    The following information was made available from the income statement and balance sheet of Lauren Company. Item 12/31/10 12/31/09 Accounts Receivable $53,400 58,600 Accounts Payable 35,600 32,700 Merchandise Inventory 85,000 79,000 …
  8. Accounting

    Peck Company The Peck Company reported the following items on its financial statements for the year ending December 31, 2010. Sales - $1,560,000 Cost of Sales - $1,400,000 Selling, general and administrative expense - 40,000 Other …
  9. Accounting

    The following information was made available from the income statement and balance sheet of Lauren Company. Item 12/31/10 12/31/09 Accounts Receivable $53,400 58,600 Accounts Payable 35,600 32,700 Merchandise Inventory 85,000 79,000 …
  10. accounting

    ABC Company uses cash basis accounting for its records. During 2010, ABC collected $400,000 from its customers, made payments of $300,000 to its suppliers for inventory, and paid $140,000 for operating costs. ABC wants to prepare accrual …

More Similar Questions