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Dmitry [639]
3 years ago
12

Zhang Industries is preparing a cash budget for June. The company has $29,500 cash at the beginning of June and anticipates $98,

000 in cash receipts and $122,540 in cash disbursements during June. The company has no loans outstanding on June 1. Compute the amount the company must borrow, if any, to maintain a $23,000 cash balance.
Business
1 answer:
PtichkaEL [24]3 years ago
7 0

Answer:

Amount to be borrowed  $18,040

Explanation:

The computation of the amount that should be borrowed is given below:

Opening cash balance $29,500

Add Cash Receipts $98,000

Less Cash Disbursements -$122,540

Balance before adjustment $4,960

Desired ending cash balance $23,000

Amount to be borrowed  $18,040

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