Ferguson Company is preparing a cash budget for September.The company's cash balance on September 1 is $34,800.The company anticipates cash receipts of $167,700 and cash disbursements of $175,980.If Ferguson desires a cash balance of $36,000, it must

Question

Quizplus · Accepted Answer

The ending cash balance without financing would be $26,520 ($34,800 + $167,700 - $175,980). To achieve the desired cash balance of $36,000, Ferguson needs to acquire financing of $9,480 ($36,000 - $26,520).

Ferguson Company Is Preparing a Cash Budget for September