Webster Corporation is preparing its cash budget for April. The March 31 cash ba

Question

Webster Corporation is preparing its cash budget for April. The March 31 cash balance is $35,500. Cash are expected to be $632,000 and cash payments for purchases are expected to be $599,500. Other cash expenses e desires a minimum cash balance at the end of each month of $21,000. If necessary, the company borrows enough cash to meet the minlmum cash balance using a short-term note. Webster's prellminary cash balance before loan activity for April Is expected to be: d are $26,100 selling and $32,600 general and administrative. The company O $9,300 O $11.700 O $21,000 O ($26.200). $68.000.

Explanation / Answer

Calculate preliminary cash balance for april :

So answer is a) $9300

Beginning cash balance 35500 Cash receipt 632000 Total cash available 667500 Cash payment for purchase -599500 Other cash expense (26100+32600) -58700 Total cash disbursement -658200 Preliminary cash balance 9300

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