Webber Company is preparing its cash budget for the upcoming quarter. The budget

Question

Webber Company is preparing its cash budget for the upcoming quarter. The budgeted beginning cash balance is expected to be $30,000. Cash Receipts and Disbursements are as follows for each month of the quarter. Month 1 Month 2 Month 3 Cash Receipts 10000 11000 12000 Cash Disbursements 9000 14359 8961 Webber wants to maintain a minimum cash balance of $30206 each month of the quarter. How much will they need to borrow at anytime during the quarter (either month 1,2, or 3) in order to maintain that balance?

Explanation / Answer

Particulars Month1 Month2 Month3 Beginning Cash Balance 30,000.00           31,000.00       30,206.00 Cash Receipts 10,000.00           11,000.00       12,000.00 Cash Disbursements      9,000.00           14,359.00         8,961.00 Closing Cash Balance = Opening+cash receipts- cash Disbursements 31,000.00           27,641.00       33,245.00 Minimum Cash Balance 30,206.00           30,206.00       30,206.00 Money Borrowed             2,565.00

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