Freet Inc. is preparing its cash budget for November. The budgeted beginning cas
ID: 2453830 • Letter: F
Question
Freet Inc. is preparing its cash budget for November. The budgeted beginning cash balance is $21,000. Budgeted cash receipts total $117,000 and budgeted cash disbursements total $86,000. The desired ending cash balance is $65,000. The company can borrow up to $100,000 at any time from a local bank, with interest not due until the following month.
Prepare the company's cash budget for November in good form. Make sure to indicate what borrowing, if any, would be needed to attain the desired ending cash balance. (Input all amounts as positive values. Omit the "$" sign in your response.)
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. (Input all amounts as positive values. Omit the "$" sign in your response.)
Explanation / Answer
Cash Budget for November
Cash balance, beginning
21,000
Add:cash receipts
117,000
Total cash available
138,000
Less: cash disbursement
(86,000)
Excess (deficiency) of cash available over disbursements
52,000
Borrowings
100,000
Cash balance, ending
152,000
Cash Budget for November
Cash balance, beginning
21,000
Add:cash receipts
117,000
Total cash available
138,000
Less: cash disbursement
(86,000)
Excess (deficiency) of cash available over disbursements
52,000
Borrowings
100,000
Cash balance, ending
152,000
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