Question

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

Answer 1

Answer:

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