Answer:
The business will need to borrow $34,000
Explanation:
We will need to analyse the cash flows the business has in order to determine how much needs to be borrowed to meet the ending cash balance desired.
The opening cash balance is $23,000, cash inflow as receipts is $136,000
So total cash on hand will be 23,000+ 136,000= $159,000
The cash on hand less disbursements will give ending balance
Ending balance = 159,000 - 135,000
Ending balance= $24,000
Desired closing balance is $58,000
Balance to meet desired cash= 58,000 - 24,000
Balance to meet desired cash= $34,000
