2) Zolezzi Inc. is preparing its cash budget for March. The budgeted beginning c

Question

2) Zolezzi Inc. is preparing its cash budget for March. The budgeted beginning cash balance is $42,000. Budgeted cash receipts total S178,000 and budgeted cash disbursements total S175,000. The desired ending cash balance is S50,000. The company can borrow up to $160,000 at any time from a local bank, with interest not due until the following month. Required: Prepare the company's cash budget for March in good form. Make sure to indicate what borrowing, if any, would be needed to attain the desired ending cash balance.

Explanation / Answer

CASH BUDGET  

Borrowing = 5,000

Particulars Amount Budgeted beginning cash balance 42,000 Budgeted cash receipts 178,000 Budgeted cash disbursements (175,000) Budgeted borrowing 5,000 Budgeted ending cash balance 50,000

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