Question

Bee Inc. is working on its cash budget for March. The budgeted beginning cash balance is $35,000. Budgeted cash receipts total $116,000 and budgeted cash disbursements total $110,000. The desired ending cash balance is $51,500. To attain its desired ending cash balance for March, the company needs to borrow:

Answer 1

$10,500

Step-by-step explanation:

Bee Inc.

Cash Budget for March

Budgeted Receipts $116,000

Les Budgeted Expenses ($110,000)

Net Cash $6,000

Add Budgeted Beginning Balance $35,000

Balance $41,000

Loan ($51,500 - $41,000) $10,500

therefore,

To attain its desired ending cash balance for March, the company needs to borrow $10,500