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Naily [24]
3 years ago
8

Durango Co. has cash receipts of $120,000 and total cash disbursements of $112,000. Durango Co. started with a beginning cash ba

lance of $4,000 and desires an ending cash balance of $8,000. Durango Co. can borrow money in $1,000 increments. How much debt can Durango Co. repay and still meet its desired cash requirement?
Business
1 answer:
Alex Ar [27]3 years ago
8 0

Answer:

See below

Explanation:

Form the above, we can compute Durango Co loan repayment as seen below;

= Beginning cash balance + Cash receipts - total cash disbursement

= $4,000 + $120,000 - $112,500 = 11,500

Ending cash balance = $8,000

Then,

= $11,500 - $8,000

= $2,500

It therefore means that Durango Co. can repay $2,500 and still meets its desired cash requirement

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2 years ago
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Goshia [24]

Answer:

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Explanation:

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Answer:

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