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Maru [420]
3 years ago
11

Requesting funds for working capital suggest that the business is not a solid investment true or false

Business
1 answer:
Igoryamba3 years ago
6 0
I’m not sure but I think it’s false
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Answer:

The company must borrow $144000

Explanation:

The required ending cash balance is the balance that the company should have at the end of the period. The decision to borrow will be taken by comparing the actual ending balance with the required ending balance. If the actual ending balance is less than the required ending balance, only then the company needs to borrow to reach the desired level of ending balance.

The actual ending balance can be calculated as,

Actual Ending balance = Opening Balance + Cash receipts - Cash disbursements

Actual Ending balance = 126000 + 870000 - 1020000

Actual Ending balance = - $24000

Difference = -24000 - 120000 = - $144000

As the ending cash balance is negative ( - $24000) which means that there is a shortage of cash and the company does not have enough cash to meet the disbursements for the period and maintain the required ending cash balance. The negative sign in difference indicates shortage and the need for borrowing. The company should borrow for the amount of difference. Thus, the company should borrow $144000

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Find the charge of A AND B to go to C and then you have to scream rlly loud okay! and then you have to jump up and down for 3x • 4x = 9p squared okay
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