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16 March, 06:44

has $ 8 comma 400 cash on hand on October 1. The company requires a minimum cash balance of $ 7 comma 300. October cash collections are $ 548 comma 310. Total cash payments for October are $ 578 comma 140. Prepare a cash budget for October. How much cash, if any, will Howard need to borrow by the end of October ?

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  1. 16 March, 07:10
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    Borrowing of $29,040

    Explanation:

    Whether or not Howard needs to borrow at end of October can be ascertained by computing the cash excess or shortfall a shown below:

    Opening cash balance $8,400

    Cash collections $548,000

    Cash available $556,400

    Cash payments ($578,140)

    Desired cash balance ($7,300)

    Cash shortfall ($29,040)

    The company has to borrow $29,040 in order to be able to make the desired cash payment and still have the desired cash closing balance of $7,300 at end of October
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Home » Business » has $ 8 comma 400 cash on hand on October 1. The company requires a minimum cash balance of $ 7 comma 300. October cash collections are $ 548 comma 310. Total cash payments for October are $ 578 comma 140. Prepare a cash budget for October.
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