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UkoKoshka [18]
3 years ago
12

Southern Company is preparing a cash budget for April. The company has $12,000 cash at the beginning of April and anticipates $3

0,000 in cash receipts and $34,500 in cash disbursements during April. Southern Company has an agreement with its bank to maintain a minimum cash balance of $10,000. To maintain the required balance during April, the company must
Business
1 answer:
const2013 [10]3 years ago
5 0

Answer:

Borrowed amount - $2,500

Explanation:

The computation is shown below:

= Opening balance of cash + expected cash receipts - cash disbursements - minimum balance

= $12,000 + $30,000 - $34,500 - $10,000

= $42,000 - $44,500

= - $2,500

The negative amount of $2,500 reflects the borrowed amount which is to be borrowed and are not sufficient balance to maintain the minimum cash balance

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Answer:

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