Wehr Inc. is preparing its cash budget for April. The budgeted beginning cash ba

Question

Wehr Inc. is preparing its cash budget for April. The budgeted beginning cash balance is $19,000. Budgeted cash receipts total $105,000 and budgeted cash disbursements total $98,000. The desired ending cash balance is $50,000. The company can borrow up to $120,000 at any time from a local bank, with interest not due until the following month.

Required: Transfer the information in the table above to an Excel spreadsheet and prepare the solutions to the following question. In using Excel, you should use appropriate formulas and functions to show your understanding of basic Excel functions. Clearly, identify your answer to each question.

Required:

Prepare the company's cash budget for April in good form. Make sure to indicate what borrowing, if any, would be needed to attain the desired ending cash balance.

Explanation / Answer

Beginning cash balance 19000 Budgeted cash receipts 105000 Total cash available 124000 Budgeted cash disbursements 98000 Ending cash balance 26000 Borrowing 24000 Desired cash balance 50000

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