What amount should Windshell Corp borrow to maintain an ending cash balance of $4,000, if the beginning cash balance is $5,000, expected cash receipts are $1,000, and expected cash payments are $3,500?
A) $1,000
B) $1,500
C) $3,500
D) $4,000

Question

Quizplus · Accepted Answer

Borrowed Amount = Minimum Ending Cash Balance F1F1F1S1?F1F1F10 (Beginning Cash Balance + Expected Cash Receipts F1F1F1S1?F1F1F10 Expected Cash Payments);
Borrowed Amount = $4,000 F1F1F1S1?F1F1F10 ($5,000 + $1,000 F1F1F1S1?F1F1F10 $3,500) = $1,500

What Amount Should Windshell Corp Borrow to Maintain an Ending