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serious [3.7K]
3 years ago
14

During September, the capital expenditure budget indicates a $400000 purchase of equipment. The ending September cash balance fr

om operations is budgeted to be $56000. The company wants to maintain a minimum cash balance of $25000. What is the minimum cash loan that must be planned to be borrowed from the bank during September?
Business
1 answer:
pickupchik [31]3 years ago
8 0

Answer:

the minimum cash loan borrowed is $369,000

Explanation:

The computation of the minimum cash loan borrowed is given below:

= Purchase value of an equipment - cash balance budgeted for september month + minimum cash balance

= $400,000 - $56,000 + $25,000

= $369,000

hence, the minimum cash loan borrowed is $369,000

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