Question

Bries Corporation is preparing its cash budget for January. The budgeted beginning cash balance is $19,600. Budgeted cash receipts total $191,000 and budgeted cash disbursements total $191,200. The desired ending cash balance is $31,600. To attain its desired ending cash balance for January, the company should borrow _____________?

Answer 1

Answer:

$12,200

Explanation:

The computation of the borrowed amount is shown below:

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

= $19,600 + $191,000 - $191,200 - $31,600

= $12,200

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