Answer:
$3,300
Explanation:
All the receipts during the period is added in the beginning cash balance and payments are deducted from it to arrive at the ending balance of the cash.
Cash budget for August
Beginning cash balance $17,000
Add: Cash Receipts <u>$120,800</u>
Total Cash available $137,800
Less: Cash Payments <u>$134,500</u>
Preliminary Cash Balance at year end $3,300
Add: Borrowing <u>$6,700 </u>
Cash Balance <u>$10,000</u>
Southland Company wants to maintain cash balance of $10,000, so they need to borrow the residual amount of $6,700 ( $10,000 - $3,300).