Dengel Inc. is working on its cash budget for November. The budgeted beginning cash balance is $24,000. Budgeted cash receipts total $177,000 and budgeted cash disbursements total $167,000. The desired ending cash balance is $50,000.
-To attain its desired ending cash balance for November,the company needs to borrow:

Question

Quizplus · Accepted Answer

Based on the information given, the company has a projected deficit of $16,000 for November ($44,000 desired ending balance - $28,000 projected cash balance). Therefore, the best choice is to borrow $16,000 to reach the desired ending cash balance.