Harrah Company provided the following information for the month of October: Harrah's policy is to keep a minimum end of the month cash balance of $30,000.How much will Harrah's need to borrow during August?

Question

Harrah Company provided the following information for the month of October:  Harrah's policy is to keep a minimum end of the month cash balance of $30,000.How much will Harrah's need to borrow during August?

Quizplus · Accepted Answer

Harrah's minimum end of the month cash balance is $30,000, and based on the information provided, the ending cash balance for October is $10,000. Therefore, Harrah's will need to borrow $20,000 ($30,000 - $10,000) to meet its minimum cash balance policy. Thus, option A is the correct answer.

Harrah Company Provided the Following Information for the Month of October