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23 June, 11:25

Batista company management wants to maintain a minimum monthly cash balance of $20,800. at the beginning of april, the cash balance is $21,600, expected cash receipts for april are $246,000, and cash disbursements are expected to be $257,200. how much cash, if any, must be borrowed to maintain the desired minimum monthly balance? amount to be borrowed to maintain the desired minimum monthly balance

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  1. 23 June, 12:50
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    Current cash balance + cash receipts - cash disbursements = $21,600 + $246,000 - $257,000 = $10,400 cash balance at the end of the month.

    Minimum cash balance - cash balance at the end of the month = $20,800 - $10,400 = $10,400 difference.

    $10,400 needs to be borrowed.
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