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kodGreya [7K]
3 years ago
11

Bustillo Inc. is working on its cash budget for March. The budgeted beginning cash balance is $40,000. Budgeted cash receipts to

tal $121,000 and budgeted cash disbursements total $115,000. The desired ending cash balance is $61,500. To attain its desired ending cash balance for March, the company needs to borrow:
Business
1 answer:
Roman55 [17]3 years ago
7 0

Answer:

Cash borrow = $15,500.

Explanation:

Given,

The company budgeted ending cash balance is $61,500.

We know,

Budgeted ending cash balance = Budgeted beginning cash balance + Budgeted cash receipts - Budgeted cash disbursements + Budgeted cash borrow

Given,

Budgeted ending cash balance = $61,500.

Budgeted beginning cash balance = $40,000.

Budgeted cash receipts = $121,000

Budgeted cash disbursements = $115,000.

Budgeted cash borrow = ?

Putting the values into the formula, we can get

$61,500 = $40,000 + $121,000 - $115,000 + Cash borrow

Or, $61,500 - ($40,000 + $121,000 - $115,000) = Cash borrow

Or, $61,500 - $40,000 - $121,000 + $115,000 = Cash borrow

Or, $176,500 - $161,000

Or, $15,500 = Cash borrow

Or, Cash borrow = $15,500.

Therefore, cash borrow for March is $15,500.

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