Answer:
Preliminary cash balance = - $13,400.
Explanation:
We know,
Cash at hand = Preliminary cash balance + Additional borrowings from bank.
Given,
Cash at hand = $5,600
Additional borrowings from bank = $19,000
Putting the values into the formula, we can get
Cash at hand = Preliminary cash balance + Additional borrowings from bank
Or, $5,600 = Preliminary cash balance + $19,000
Or, $5,600 - $19,000 = Preliminary cash balance
Or, Preliminary cash balance = - $13,400.
Therefore, the company had no cash at the beginning; rather, they had to use other people's money.
