Answer:
The $26,000 is the borrowed amount during February month
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
= $12,000 + $71,000
= $83,000
And, the cash disbursement is $114,000
So the balance is equals to
= Cash disbursement - cash available for use
= $114,000 - $83,000
= $31,000
And the maintain balance is $5,000
So, the borrowed amount is equal to
= Total balance available - maintain balance
= $31,000 - $5,000
= $26,000
Hence, the $26,000 is the borrowed amount during February month
