Question

Speedy Runner requires an ending cash balance of at least​ $12,000 and can borrow from a line of credit in​ $1,000 increments. How much will Speedy Runner need to borrow at the end of​ October?

Answer 1

To determine how much Speedy Runner will need to borrow, subtract the ending cash balance from $12,000.

Step-by-step explanation:

To determine how much Speedy Runner will need to borrow at the end of October, we need to know the ending cash balance and the borrowing increments. Since the ending cash balance should be at least​ $12,000, Speedy Runner will need to borrow the difference between the ending cash balance and $12,000. If borrowing is done in​ $1,000 increments, we can calculate the borrowing amount as follows:

Borrowing Amount = Ending Cash Balance - $12,000

For example, if the ending cash balance is $13,500, the borrowing amount would be $13,500 - $12,000 = $1,500.

Remember to consider any interest or fees associated with the borrowing.

Answer 2

$9,000

Explanation:

Beg. Cash Balance $15,300

Cash Collections +$435,000

Cash Available $450,300

Less Cash Disbursements:

Direct Materials ($80,000)

Direct Labor ($32,000)

MOH ($25,000)

Operating Expenses ($110,000)

Capital Expend. ($200,000)

Cash Excess $3,300

Borrow +$9,000

Ending Cash Balance $12,300