Edmond Medical Center has provided you with the following budget information for April: $\begin{array}{ll}
\text { Cash collections } & \$ 876,000 \
\text { April } 1 \text { cash balance } & 23,000 \
\text { Cash disbursements } & 978,600
\end{array}$ Edmond has a policy of maintaining a minimum cash balance of $20,000 and borrows only in $1,000 increments.How much will Edmond borrow in April?

Question

Quizplus · Accepted Answer

Edmond needs to maintain a minimum cash balance of $20,000. Starting with $23,000 and collecting $876,000, the total cash available is $899,000. After disbursing $978,600, the cash balance would be -$79,600. To cover this deficit and maintain the $20,000 minimum balance, Edmond needs to borrow $99,600, which rounds up to $100,000 in $1,000 increments.

Edmond Medical Center Has Provided You with the Following Budget