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dezoksy [38]
3 years ago
14

The following information was taken from Southgate Industry's cash budget for the month of July: Beginning cash balance $480,000

Cash receipts 304,000 Cash disbursements 544,000 If the company has a policy of maintaining a minimum end of the month cash balance of $400,000, the amount the company would have to borrow is
Business
1 answer:
vladimir2022 [97]3 years ago
4 0

Answer:

the  amount that the company have to borrow is $160,000

Explanation:

The computation of the amount that the company have to borrow is given below:

= Minimum cash balance at end of the month - (beginning cahs balance + cash receipts - cash disbursement)

= $400000 - $(480000+304000-544000)

= $160,000

hence, the  amount that the company have to borrow is $160,000

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