Question

Freet Inc. is preparing its cash budget for November. The budgeted beginning cash balance is $15,000.

Budgeted cash receipts total $106,000 and budgeted cash disbursements total $97,000. The desired
ending cash balance is $40,000. The company can borrow up to $80,000 at any time from a local bank, with
interest not due until the following month.
Required:
Prepare the company's cash budget for November in good form. Make sure to indicate what borrowing, if
any, would be needed to attain the desired ending cash balance. (Input all amounts as positive values.
Omit the "S" sign in your response.
Cash balance, beginning
Add cash receipts
Total cash available
Less cash disbursement
Excess (deficiency) of cash available over disbursements
Borrowings
Cash balance, ending​

Answer 1

Freet Inc.

Cash Budget November

Cash balance, beginning 15000

Add cash receipts 106000

Total cash available 121000

Less cash disbursement 97000

Excess (deficiency) of cash available over disbursements 24000

Borrowings 16000

Cash balance, ending​ 40000