Question

Webster Corporation is preparing its cash budget for April. The March 31 cash balance is $38,200. Cash receipts are expected to be $650,000 and cash payments for purchases are expected to be $613,000. Other cash expenses expected are $27,900 selling and $34,400 general and administrative. The company desires a minimum cash balance at the end of each month of $39,000. If necessary, the company borrows enough cash to meet the minimum using a short-term note. The amount Webster must borrow during April is:

Answer 1

$26,100

Step-by-step explanation:

$

Opening Cash Balance $38,200

Cash Receipts (Inflows) $650,000

Cash Payments

Purchases $(613,000)

Selling Expenses $(27,900)

G & A Expense $(34,400)

Cash Balance $12,900

Desired Cash Balance $39,000

Cash Deficit $26,100

The cash deficit must be funded by borrowings

Answer 2

$ 26,100

Step-by-step explanation:

Find the attachment