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20 July, 19:15

Bustillo Inc. is working on its cash budget for March. The budgeted beginning cash balance is $35,000. Budgeted cash receipts total $142,000 and budgeted cash disbursements total $151,000. The desired ending cash balance is $30,000. To attain its desired ending cash balance for March, the company needs to borrow:

(A) $0

(B) $4,000

(C) $56,000

(D) $30,000

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Answers (1)
  1. 20 July, 19:40
    0
    The correct answer is B.

    Explanation:

    Giving the following information:

    The budgeted beginning cash balance is $35,000. Budgeted cash receipts total $142,000 and budgeted cash disbursements total $151,000. The desired ending cash balance is $30,000.

    Cash = 35,000 + 142,000 - 151,000 - 30,000 = - 4,000

    Borrow = $4,000
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