Enciso Corporation is preparing its cash budget for November. The budgeted begin

Question

Enciso Corporation is preparing its cash budget for November. The budgeted beginning cash balance is $36,000. Budgeted cash receipts total $110,000 and budgeted cash disbursements total $112,000. The desired ending cash balance is $40,000. The company can borrow up to $100,000 at any time from a local bank, with interest not due until the following month. Required: 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.

Explanation / Answer

Beginning cash balance 36000 Add:cash receipts during the year 110000 Total cash available for disbursements 146000 less::Cash disbursements -112000 Excess of cash over disbursements 34000 Financing :Borrowing    [40000-34000] 6000 Ending cash balance 40000

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.