Do It! Review 7-4b Ayayai Corporation\'s management wants to maintain a minimum

Question

Do It! Review 7-4b Ayayai Corporation's management wants to maintain a minimum monthly cash balance of $8,160. At the beginning of September, the cash balance is $12,515, expected cash receipts for September are $99,144, and cash disbursements are expected to be $117,300 How much cash, if any, must Ayayai borrow to maintain the desired minimum monthly balance? Determine your answer by using the basic form of the cash budget. AYAYAI CORPORATION Cash Budget For September Click if you would like to Show Work for this question: Open Show Work

Explanation / Answer

Answer:-Ayayai corporation must borrow $13801 to maintain desired minmum monthly balance.

Explanation:-

AYAYAI CORPORATION CASH BUDGET FOR SEPTEMBER PARTICULARS AMOUNT $ Opening cash balance 12515 Add:- Cash receipts 99144 Total cash available 111659 Less:- Cash disbursements 117300 Closing cash balance -5641 Closing cash required 8160 Borrow amount 13801

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