Answered

Explore Westonci.ca, the leading Q&A site where experts provide accurate and helpful answers to all your questions. Connect with professionals ready to provide precise answers to your questions on our comprehensive Q&A platform. Join our Q&A platform to connect with experts dedicated to providing accurate answers to your questions in various fields.

Becker Company is preparing its cash budget for the upcoming month. The budgeted beginning cash balance is expected to be $70,000. Budgeted cash disbursements are $254,000, while budgeted cash receipts are $252,000. Becker Company wants to have an ending cash balance of $100,000. How much would Becker Company need to borrow to achieve its desired ending cash balance

Sagot :

abiolataiwo2015

Answer:

$32,000

Explanation:

Calculation to determine How much would Becker Company need to borrow to achieve its desired ending cash balance

Using this formula

Desired ending cash balance=[Ending cash balance-Budgeted beginning cash balance+

(Budgeted cash disbursements-budgeted cash receipts)]

Let plug in the formula

Desired ending cash balance=[$100,000-$70,000+($254,000-$252,000)]

Desired ending cash balance=$30,000+$2,000

Desired ending cash balance=$32,000

Therefore The amount that Becker Company need to borrow to achieve its desired ending cash balance is $32,000

We appreciate your visit. Our platform is always here to offer accurate and reliable answers. Return anytime. Thank you for choosing our platform. We're dedicated to providing the best answers for all your questions. Visit us again. Thank you for using Westonci.ca. Come back for more in-depth answers to all your queries.