Microsoft Office Tutorials and References
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REVIEW OF EXCEL BASICS
Answers to the Questions about Borrowing and Repayment
Figures C-50 and C-51 display solutions for the borrowing and repayment calculations.
FIGURE C-50
Answers to examples of borrowing
In Figure C-50, the formula in cell D2 for the amount to borrow is =IF(B2>=C2,0,C2-B2).
FIGURE C-51
Answers to examples of repayment
In Figure C-51, the formula in cell E10 for the amount to repay is
=IF(B10>=C10,IF(D10>0,MIN(B10-C10,D10),0),0).
Note the following points about the repayment calculations shown in Figure C-51.
￿
In Example 1, only $2,000 is available for debt repayment ($12,000 – $10,000) to avoid dropping
below the Minimum Cash Required.
￿
In Example 2, only $3,000 is available for debt repayment.
￿
In Example 3, the Beginning-of-Year Debt was zero, so the Ending Cash is the same as the Net
Cash Position.
￿
In Example 4, there was enough cash to repay the entire $40,000 debt, leaving $20,000 in
Ending Cash.
￿
In Example 5, the company has cash problems
it cannot repay any of the Beginning-of-Year
Debt of $10,000, and it will have to borrow an additional $30,000 to reach the Minimum Cash
Required target of $10,000.
You should now have all the basic tools you need to tackle Scenario Manager in Cases 6 and 7.
Good luck!
 
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