Answer:
See cash budget below
Explanation:
A cash budget shows the expected future cash receipts and payment for a forthcoming accounting period and the cash balance.
It is prepared as follows:
Cash budget
$
Expected cash receipts 59,400
Expected cash payment <u>66,090
</u>
Cash deficit (6690
)
Opening cash balance 12,230
Borrowed fund <u>2,030
</u>
Closing cash balance <u>7,570</u>
Note:
The borrowed is the difference between the net cash balance and the the minimum cash balance
Net cash balance = 12,030 - 6,690= 5340
Borrowed fund = 7,570-5340= 2,030
Borrowed fund = $2,030
