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Murrr4er [49]
2 years ago
5

The following informationis drawn from Royal Industries cash budget

Business
1 answer:
BabaBlast [244]2 years ago
5 0

Answer:

b. $3,000 needed

Explanation:

Given that

Beginning cash balance = $10,000

Cash receipts = $40,000

Cash Payment = $48,000

Desired ending cash = $5,000

The computation of amount that need to borrow:-

Cash balance = Beginning cash balance + Cash receipts - Cash Payment

= $10,000 + $40,000 - $48,000

= $50,000 - 48,000

= $2,000

Cash borrowed = Desired ending cash - Cash balance

= $5,000 - $2,000

= $3,000

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