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

Quizplus · Accepted Answer

Webber Company needs to borrow $37,000. The calculation is: Beginning cash balance ($30,000) + Cash receipts ($101,000) - Cash disbursements ($123,000) = $8,000. To achieve the desired ending cash balance of $45,000, they need to borrow $45,000 - $8,000 = $37,000.

Webber Company Is Preparing Its Cash Budget for the Upcoming