Rogers Corporation is preparing its cash budget for July. The budgeted beginning cash balance is $25,000. Budgeted cash receipts total $141,000 and budgeted cash disbursements total $139,000. The desired ending cash balance is $30,000.
-To attain its desired ending cash balance for July, the company should borrow:

Question

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The company needs an ending cash balance of $30,000. Starting with $25,000 and adding $141,000 in receipts gives $166,000. After disbursements of $139,000, the balance is $27,000. To reach the desired $30,000, the company needs to borrow $3,000.

Rogers Corporation Is Preparing Its Cash Budget for July