The following information was taken from Hobson Company cash budget for the month of June Beginning cash balance $\quad \$ 150,000$
Cash receipts $\quad 145,000$
Cash disbursements
170,000 If the company has a policy of maintaining end-of-the-month cash balance of $125,000, the amount the company would have to borrow is
A) $50,000.
B) $25,000.
C) $0
D) $75,000.

Question

Quizplus · Accepted Answer

The company has a beginning cash balance of $150,000, cash receipts of $145,000, and cash disbursements of $170,000. This results in an ending cash balance of $125,000, which is the company's desired ending cash balance. Therefore, the company does not need to borrow any money.

The Following Information Was Taken from Hobson Company Cash Budget $150,000\quad \$ 150,000$150,000

The Following Information Was Taken from Hobson Company Cash Budget $\quad \$ 150,000$