Laurey Inc. is working on its cash budget for May. The budgeted beginning cash b

Question

Laurey Inc. is working on its cash budget for May. The budgeted beginning cash balance is $44,000. Budgeted cash receipts total $125,000 and budgeted cash disbursements total $119,000. The desired ending cash balance is $69,500. To attain its desired ending cash balance for May, the company needs to borrow:

Laurey Inc. is working on its cash budget for May. The budgeted beginning cash balance is $44,000. Budgeted cash receipts total $125,000 and budgeted cash disbursements total $119,000. The desired ending cash balance is $69,500. To attain its desired ending cash balance for May, the company needs to borrow:

Explanation / Answer

Opening Cash Balance 44000 Add: cash Receipts 125000 Less: Cash Disbursements -119000 Net cash 50000 Minimum Balance 69500 Amount to be borrowed 19500 (69500-50000)

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