Question

Speedy Runner requires an ending cash balance of at least​ $12,000 and can borrow from a line of credit in​ $1,000 increments. How much will Speedy Runner need to borrow at the end of​ October?

Answer 1

Answer:

$9,000

Explanation:

Beg. Cash Balance $15,300

Cash Collections +$435,000

Cash Available $450,300

Less Cash Disbursements:

Direct Materials ($80,000)

Direct Labor ($32,000)

MOH ($25,000)

Operating Expenses ($110,000)

Capital Expend. ($200,000)

Cash Excess $3,300

Borrow +$9,000

Ending Cash Balance $12,300