Wehr Inc. is preparing its cash budget for April. The budgeted beginning cash ba

Question

Wehr Inc. is preparing its cash budget for April. The budgeted beginning cash balance is $11,000. Budgeted cash receipts total $151,000 and budgeted cash disbursements total $145,000. The desired ending cash balance is $50,000. The company can borrow up to $120,000 at any time from a local bank, with interest not due until the following month.

Prepare the company's cash budget for April. (Input all amounts as positive values.)

Wehr Inc. is preparing its cash budget for April. The budgeted beginning cash balance is $11,000. Budgeted cash receipts total $151,000 and budgeted cash disbursements total $145,000. The desired ending cash balance is $50,000. The company can borrow up to $120,000 at any time from a local bank, with interest not due until the following month.

Explanation / Answer

Cash Budget For the Month of April   Cash balance, beginning $    11,000.00   Add cash receipts $ 151,000.00   Total cash available $ 162,000.00   Less cash disbursements $ 145,000.00   Excess of cash available over disbursements $    17,000.00   Borrowings $    33,000.00   Cash balance, ending $    50,000.00

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