Ari,Inc.is working on its cash budget for December.The budgeted beginning cash balance is $14,000.Budgeted cash receipts total $127,000 and budgeted cash disbursements total $126,000.The desired ending cash balance is $40,000.To attain its desired ending cash balance for December,the company needs to borrow:

Question

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The company needs to borrow $25,000 to achieve the desired ending cash balance of $40,000. Starting with $14,000, adding $127,000 in receipts, and subtracting $126,000 in disbursements leaves $15,000. To reach $40,000, they need an additional $25,000.

Ari,IncIs Working on Its Cash Budget for December