Palmerin Corporation is preparing its cash budget for November. The budgeted beginning cash balance is $30,000. Budgeted cash receipts total $167,000 and budgeted cash disbursements total $171,000. The desired ending cash balance is $50,000.
-To attain its desired ending cash balance for November, the company should borrow:

Question

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The company needs to borrow $24,000 to cover the shortfall and achieve the desired ending cash balance of $50,000. The calculation is: $30,000 (beginning balance) + $167,000 (receipts) - $171,000 (disbursements) + $24,000 (borrowed) = $50,000 (desired ending balance).

Palmerin Corporation Is Preparing Its Cash Budget for November