The beginning cash balance is $3000, estimated cash receipts are $108,000, and estimated cash payments are $107,000. How much cash must be borrowed to have a desired ending balance of $9000?

Question

Quizplus · Accepted Answer

The ending cash balance is calculated as: Beginning cash balance + Cash receipts - Cash payments. So, $3000 + $108,000 - $107,000 = $4000. To reach the desired ending balance of $9000, $5000 must be borrowed.

The Beginning Cash Balance Is $3000, Estimated Cash Receipts Are