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Bustillo Inc. is working on its cash budget for March. The budgeted beginning cash balance is...

Bustillo Inc. is working on its cash budget for March. The budgeted beginning cash balance is $51,000. Budgeted cash receipts total $135,000 and budgeted cash disbursements total $130,000. The desired ending cash balance is $72,000. To attain its desired ending cash balance for March, the company needs to borrow:
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Answer #1

Answer : $16,000

Total borrowing needed

Beginning cash balance 51,000
Add: Budgeted Cash Receipts 135,000
Total Cash Available 186,000
Less: Cash Disbursements 130,000
Cash Balance Before Borrowing 56,000
Cash Balance need to Maintain 72,000
Amount To be Borrowed (72000-56000) 16,000
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