Webber Company is preparing its cash budget for the upcoming month.The budgeted beginning cash balance is expected to be $30,000.Budgeted cash receipts are $101,000,while budgeted cash disbursements are $123,000.Webber Company wants to have an ending cash balance of $45,000.How much would Webber Company need to borrow to achieve its desired ending cash balance?

Question

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Webber Company needs to calculate the cash needed to achieve the desired ending balance. Starting with $30,000, adding $101,000 in receipts gives $131,000. After disbursements of $123,000, the balance is $8,000. To reach the desired ending balance of $45,000, they need to borrow $37,000 ($45,000 - $8,000).

Webber Company Is Preparing Its Cash Budget for the Upcoming