Question

Yoxyju128 Corporation has a cash balance of $11,100 on May 1. The company must maintain a minimum cash balance of $9,000. During May, expected cash receipts are $54,000. (ID#24360) Cash disbursements during the month are expected to total $61,000. Q) How much will Yoxyju128 need to borrow during May? (ignore interest payments)

Answer 1

$4,900

Step-by-step explanation:

Opening Cash Balance (as on May 1) = $11,100

Estimated Cash Receipts during May = $54,000

Estimated Cash Disbursements during May = $61,000

Net Cash Available = $11,100 + $54,000 - $61,000 = $4,100

Minimum Cash Balance to be maintained = $9,000

So, Yoxyju128 Corporation will required to borrow in May the following amount: $9,000 - $4,100 = $4,900