The following informationis drawn from Royal Industries cash budget
Cash Receipts 40,000...
Business, 18.03.2020 02:55 brasherfamily14
The following informationis drawn from Royal Industries cash budget
Cash Receipts 40,000
Beg, Cash Bal. 10,000
Cash payment 48,000
Desired ending cash cushion 5,000
If there is a cash shortage, the company borrows money. if a surplus occurs funds are used to repay loans or ot invest in short-term assests. The company had no debt before January 1st. The amounted "needed" to borrow or the amount "available" for repayment of debt in Januar would be
a. 2000 available
b. 3,000 needed
c. 7000 available
d 13,000 needed
Answers: 3
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