Bustillo inc. is working on its cash budget for march. the budgeted beginning cash balance is $35,000. budgeted cash receipts total $142,000 and budgeted cash disbursements total $151,000. the desired ending cash balance is $30,000. to attain its desired ending cash balance for march, the company needs to borrow:

(a) $0

(b) $4,000

(c) $56,000

(d) $30,000

The correct answer is B.

Explanation:

Giving the following information:

The budgeted beginning cash balance is $35,000. Budgeted cash receipts total $142,000 and budgeted cash disbursements total $151,000. The desired ending cash balance is $30,000.

Cash= 35,000 + 142,000 -151,000 - 30,000= -4,000

Borrow= $4,000

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