Bries Corporation is preparing its cash budget for January. The budgeted beginning cash balance is $18,700. Budgeted cash receipts total $186,500 and budgeted cash disbursements total $189,400. The desired ending cash balance is $30,700. To attain its desired ending cash balance for January, the company should borrow:

Question

Business

Camden Stein

1 January, 14:35

Bries Corporation is preparing its cash budget for January. The budgeted beginning cash balance is $18,700. Budgeted cash receipts total $186,500 and budgeted cash disbursements total $189,400. The desired ending cash balance is $30,700. To attain its desired ending cash balance for January, the company should borrow:

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Answers (1)

Know the Answer?

Milo Bush · Answer 1

Cash borrow = $14,900.

Explanation:

Given,

The company budgeted ending cash balance is $30,700.

We know,

Budgeted ending cash balance = Budgeted beginning cash balance + Budgeted cash receipts - Budgeted cash disbursements + Budgeted cash borrow

Given,

Budgeted ending cash balance = $30,700.

Budgeted beginning cash balance = $18,700

Budgeted cash receipts = $186,500

Budgeted cash disbursements = $189,400

Budgeted cash borrow = ?

Putting the values into the formula, we can get

$30,700 = $18,700 + $186,500 - $189,400 + Cash borrow

Or, $30,700 - ($18,700 + $186,500 - $189,400) = Cash borrow

Or, $30,700 - $18,700 - $186,500 + $189,400 = Cash borrow

Or, $220,100 - $205,200 = Cash borrow

Or, $14,900 = Cash borrow

Or, Cash borrow = $14,900.

Therefore, cash borrow is $14,900.