Question

Bustillo Incorporated is working on its cash budget for March. The budgeted beginning cash balance is $35,000. Budgeted cash receipts total $142,000 and budgeted cash disbursements total $151,000. The desired ending cash balance is $30,000. To attain its desired ending cash balance for March, the company needs to borrow:

Answer 1

$4,000

Step-by-step explanation:

Bustillo Incorporated

Cash Budget

For the month of March, 202x

Beginning cash balance $35,000

Total cash collections $142,000

Total cash disbursements ($151,000)

Ending cash before financing $26,000

Desired minimum cash balance ($30,000)

Financing needs ($4,000)