Laurey Inc. is working on its cash budget for May. The budgeted beginning cash b

Question

Laurey Inc. is working on its cash budget for May. The budgeted beginning cash balance is $42,000. Budgeted cash receipts total $123,000 and budgeted cash disbursements total $117,000. The desired ending cash balance is $65,500. To attain its desired ending cash balance for May, the company needs to borrow:

$113,500

$0

$65,500

$17,500

Laurey Inc. is working on its cash budget for May. The budgeted beginning cash balance is $42,000. Budgeted cash receipts total $123,000 and budgeted cash disbursements total $117,000. The desired ending cash balance is $65,500. To attain its desired ending cash balance for May, the company needs to borrow:

Explanation / Answer

$17,500 Statement showing computations Particulars Amount Beginning Cash Balance         42,000.00 Budgeted Cash Receipts      123,000.00 Total Cash Available for Disbursements      165,000.00 budgeted cash disbursements      117,000.00 Ending cash balance before borrowing         48,000.00 desired ending cash balance         65,500.00 Money to be borrowed= 65,500 - 48,000         17,500.00

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