Webster Corporation is preparing its cash budget for April.The March 31 cash balance is $36,400.Cash receipts are expected to be $641,000 and cash payments for purchases are expected to be $608,500.Other cash expenses expected are $27,000 selling and $33,500 general and administrative.The company desires a minimum cash balance at the end of each month of $30,000.If necessary,the company borrows enough cash to meet the minimum using a short-term note.Webster's preliminary cash balance before loan activity for April is expected to be:

Question

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The preliminary cash balance before loan activity for April is $8,400. This is calculated by adding the March 31 cash balance of $36,400 to the expected cash receipts of $641,000 and subtracting the expected cash payments for purchases of $608,500, the expected selling expenses of $27,000, and the expected general and administrative expenses of $33,500.

Webster Corporation Is Preparing Its Cash Budget for April