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4 May, 14:05

Freet Inc. is preparing its cash budget for November. The budgeted beginning cash balance is $21,000. Budgeted cash receipts total $100,000 and budgeted cash disbursements total $99,000. The desired ending cash balance is $55,000. The company can borrow up to $130,000 at any time from a local bank, with interest not due until the following month. Required: Prepare the company's cash budget for November in good form. Make sure to indicate what borrowing, if any, would be needed to attain the desired ending cash balance. (Input all amounts as positive values. Omit the "$" sign in your response.)

Cash balance, beginning

Add cash receipts

Total cash available

Less cash disbursement

Excess (deficiency) of cash available over disbursements

Borrowings

Cash balance, ending

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Answers (1)
  1. 4 May, 14:53
    0
    Answer and Explanation:

    The Preparation of company's cash budget is shown below:-

    Beginning cash balance $21,000

    Add: Cash receipt $100,000

    Total cash available $121,000

    Less: Cash disbursement $99,000

    Excess of cash available

    over disbursement $22,000

    Add: Borrowings $33,000

    Cash balance, ending $55,000
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