Answer:
Zoo Inc.
Cash budget for the month of March
Amount in $
Beginning cash balance 27,000
Add:
Cash receipts 106,000
Total cash available 133,000
Less:
Cash disbursements (93,000)
Ending cash balance before borrowing 40,000
Desired ending cash balance <u> 65,000</u>
Cash excess (deficiency) <u>(25,000)</u>
The borrowing required to attain desired ending cash balance is $25,000
Explanation:
Cash budget is a forecast of the net cash flows to/from an entity over a given period of time.
Details of the cash budget include the opening cash balance, the expected expenses or outflows of cash, the expected inflows and the closing balance expected as a result of the three (3) items mentioned earlier.
