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During the budget period, Tiger Manufacturing company expects to make $219,000 of sales on credit and...

During the budget period, Tiger Manufacturing company expects to make $219,000 of sales on credit and collect $143,500 of cash from customers. Assume no other cash inflows are expected, total cash payments during the budget period are expected to be $179,000 and an increase of $10,000 is desired in the cash balance. How much cash needs to be borrowed during the budget period?

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Answer #1
Total cash payments 179000
Less: Total cash collections 143500
Cash deficiency 35500
Add: Desired increase in the cash balance 10000
Cash to be borrowed during the budget period 45500
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