Calculating Cash Budget: How to Maintain a $5,000 Cash Balance

Chapter 20 Homework 0 Saved t IS correct or incorrect for the work you have completed so far. It does not indicate eck my work mod 6 Santos Co. is preparing a cash budget for February. The company has $13,000 cash at the beginning of February and anticipates $67,000 in cash receipts and $117,000 in cash payments during February. What amount, if any, must the company borrow during February to maintain a $5,000 cash balance? The company has no loans outstanding on February 1. (Negative cash balances, if any, 167 should be indicated with minus sign.) points 9 Answer is complete and correct. B ' ' h b | 13 000 eg'""'"9_°as a an" s ' 0 Beginning Cash - $13000 Cash receipts 9 67.000 0 Cash Reciepts - $67000 . Total Cash = 80000 = 13000 + 67000 Total cash available 80,000 cash Payments (minus) = 417,000 Cash payments 9 117,000 0 Preliminary Cash Balance = $80000 - 111000 = -37000 . . Endin Balance Needs to Be $5000 Preliminary cash balance $ (37,000) 0 49000 + 37000 = 0 + 55000 Additional loan from bank 9 42.000 0 37000 + 5000 = 42001; (Loan) Endin Balance = 5000 Ending cash balance $ 5,000 o g