Wings Inc. is preparing its cash budget for November. The budgeted beginning cash balance is $10,000. Budgeted cash receipts total $100,000 and budgeted cash disbursements total $104,000. The desired ending cash balance is $30,000.
Required:
a. Calculate the excess (deficiency) of cash available over disbursements for November.
b. To attain its desired ending cash balance for November, how much should the company borrow.

Question

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The Answer of Wings Inc. is preparing its cash budget for November. The budgeted beginning cash balance is $10,000. Budgeted cash receipts total $100,000 and budgeted cash disbursements total $104,000. The desired ending cash balance is $30,000.
Required:
a. Calculate the excess (deficiency) of cash available over disbursements for November.
b. To attain its desired ending cash balance for November, how much should the company borrow.

Wings Inc Is Preparing Its Cash Budget for November