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ArbitrLikvidat [17]
2 years ago
14

MC Qu. 110 Southland Company is preparing... Southland Company is preparing a cash budget for August. The company has $17,100 ca

sh at the beginning of August and anticipates $121,000 in cash receipts and $134,600 in cash disbursements during August. Southland Company wants to maintain a minimum cash balance of $10,000. The preliminary cash balance at the end of August before any loan activity is:
Business
1 answer:
Keith_Richards [23]2 years ago
7 0

Answer:

The preliminary cash balance at the end of August before any loan activity is $3,500

Explanation:

For calculating the borrowed amount, first we have to compute the cash available for use and cash payment.

So,

Cash available for use is equals to

= Beginning balance + Cash receipts

= $17,100 + $121,000

= $138,100

And, the cash disbursement is $134,600

So the preliminary cash balance is equals to

= Cash available for use - cash disbursement

= $138,100 - $134,600

= $3,500

Hence, The preliminary cash balance at the end of August before any loan activity is $3,500

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