Please Show All Work Walker Corporation is preparing its cash budget for Novembe
ID: 2415994 • Letter: P
Question
Please Show All Work
Walker Corporation is preparing its cash budget for November. The budgeted beginning cash balance is $43,000. Budgeted cash receipts total $117,000 and budgeted cash disbursements total $122,000. The desired ending cash balance is $55,000. The company can borrow up to $100,000 at any time from a local bank, with interest not due until the following month.
Prepare the company's cash budget for November in good form. Make sure to indicate what borrowing, if any, would be needed to attain the desired ending cash balance (Points : 25)
Explanation / Answer
Cash balance $43,000
Add:Cash receipts 117,000
total Receipts $160,000
less:Disbursements (122,000)
Excess 38,000
Borrowing 17,000
Ending cahs balnce 55,000
Cash balance $43,000
Add:Cash receipts 117,000
total Receipts $160,000
less:Disbursements (122,000)
Excess 38,000
Borrowing 17,000
Ending cahs balnce 55,000
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