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Diano4ka-milaya [45]
3 years ago
13

At the beginning of November, Watson Industries has a cash balance of $3,461,000. They have expected cash receipts of $712,000 a

nd expected cash disbursements of $1,397,000 for the month of November. If Watson Industries wants to maintain a minimum monthly balance of $3,000,000, how much cash should they borrow in November
Business
1 answer:
Ahat [919]3 years ago
4 0

Answer:

$224,000

Explanation:

The computation of the borrowed cash amount is shown below:

= Cash balance + expected cash receipts - expected cash disbursements - minimum monthly balance

= $3,461,000 + $712,000 - $1,397,000 - $3,000,000

= $224,000

Simply we add the expected cash receipts and less the expected cash disbursements and minimum monthly balance to the cash balance so that accurate value can come.

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Answer:

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