Question

Wright ​Services, Inc., has $ 8 comma 800 cash on hand on August 1. The company requires a minimum cash balance of $ 7 comma 400. August cash collections are $ 548 comma 400. Total cash payments for August are $ 563 comma 380. Prepare a cash budget for August. How much​ cash, if​ any, will Wright need to borrow by the end of August​?

Answer 1

- $13,580

Step-by-step explanation:

The preparation of the cash budget for August month is shown below:

Cash on Hand on August 1 $8,800

Add: August cash collections $548,400

Total cash available $557,200

Less: Total cash payments - $563,380

Ending cash balance - $6,180

Less: Minimum cash balance - $7,400

Borrowed amount - $13,580