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Durango Co. had a beginning cash balance of $4,000, total cash receipts of $110,000 and total cash disbursements of $112,500. The company can borrow in $1,000 increments. If Durango desires an $8,000 ending cash balance, the total amount they need to borrow is ______.

Sagot :

abiolataiwo2015

If Durango desires an $8,000 ending cash balance, the total amount they need to borrow is $7500.

Total amount to borrow

First step

Cash balance=Beginning cash balance+ Cash receipts- total cash disbursements

Cash balance= 4,000+110,000-112,500

Cash balance= 1,500

Second step

Total amount to borrow=Ending cash balance-Cash balance+Increment

Total amount to borrow=$8000-$1500+$1000

Total amount to borrow=$7500

Therefore  the total amount they need to borrow is $7500.

Learn more about amount needed to borrow here:https://brainly.com/question/12889974

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