Answer:
$12,000
Explanation:
Beginning cash balance = $47,000
Budgeted cash receipts = $131,000
Budgeted cash disbursements = $126,000
The desired ending cash balance = $64,000
The net movements around the cash opening balances, cash receipts, disbursement and borrowing results in the closing balance by the formula below;
The desired ending cash balance = Beginning cash balance + Budgeted cash receipts + Borrowing - Budgeted cash disbursements
$64,000 = $47,000 + $131,000 + Borrowing - $126,000
Borrowing = $64,000 + $126,000 - $47,000 - $131,000
Borrowing = $12,000
Borrowing required to achieve desired closing balance is $12,000
