zolezzi inc. is preparing its cash budget for march. the budget begining cash ba

Question

zolezzi inc. is preparing its cash budget for march. the budget begining cash balance is $42000. budgeted cash receipts total $178000 and budgeted cash disbursements total 175000. the desired ending cash balance is $50000. the company can borrow up to $160000 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

Dear Student Thank you for using Chegg Please find below the answer and please give thumbs up   Statementshowing Computations Paticulars Amount begining cash balance                     42,000.00 budgeted cash receipts                   178,000.00 Total cash available                   220,000.00 Less budgeted cash disbursements                (175,000.00) Budgeted ending cash balance                     45,000.00 Desired Ending Cash Balance                     50,000.00 Borrowing needed= 50,000 - 45,000                       5,000.00

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