Ask Question
2 October, 21:11

Western Company is preparing a cash budget for June. The company has $11,200 in cash at the beginning of June and anticipates $30,800 in cash receipts and $36,100 in cash payments during June. Western Company has an agreement with its bank to maintain a minimum cash balance of $10,000. As of May 31, the company has no loans outstanding. To maintain the $10,000 required balance, during June the company must:

+4
Answers (1)
  1. 3 October, 00:10
    0
    during June balance we need pay or borrow $4100

    Explanation:

    given data

    cash = $11200

    cash receipts = $30800

    cash payments = $36100

    minimum cash balance = $10000

    required balance = $10000

    to find out

    during June balance

    solution

    so we find balance here as

    balance = cash in beginning + cash receipts - cash payments

    put here all value

    balance = 11200 + 30800 - 36100

    balance = $5900

    so here we know minimum cash balance require = $10000

    so here

    required balance = $10000 - $5900

    required balance = $4100

    so during June balance we need pay or borrow $4100
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Western Company is preparing a cash budget for June. The company has $11,200 in cash at the beginning of June and anticipates $30,800 in ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers