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Shalnov [3]
2 years ago
7

At the beginning of the year, opal company has a cash balance of $23,000. During the year, the company expects cash disbursement

s of $160,000, and cash receipts of $140,000. If opal company requires an ending cash balance of $20,000, how much must the company borrow?.
Business
1 answer:
NNADVOKAT [17]2 years ago
5 0

In the above case, if the opal company has a cash balance of $23,000 and the company expects an ending cash balance of $20,000, then the company should borrow $17,000.

<h3>What do you mean by Cash?</h3>

Cash refers to the legal tender that must be used for exchanging goods, services, or debt.

In other words, it refers to the money that is a reliable form of payment and an accepted form in businesses.

Calculating cash that must be borrowed by a company.

\begin{aligned}\text{Total available cash}&=\text{Beginning cash balance+ Cash receipts}\\&=\$23,000+\$140,000\\&=\$163,000\end{aligned}

\begin{aligned}\text{Borrowings}&=\text{Total available cash-Cash disbursements- Ending cash balance}\\\\&=\$163,000-\$160,000-\$20,000\\&=\$17,000\end{aligned}

So, (17,000) is required by the company to borrow.

Learn more about Cash here:

brainly.com/question/2804189

#SPJ1

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