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2. The cash budget: Sit Down Corporation has a cash balance of $32,500 on April 1....

2. The cash budget: Sit Down Corporation has a cash balance of $32,500 on April 1. The company must maintain a minimum cash balance of $30,000. During April, expected cash receipts are $48,500. Cash disbursements during the month are expected to total $56,100. Ignoring interest payments, how much will the company need to borrow during April?

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Answer #1
opening balance 32,500
Add:receipts 48,500
total cash collection 81,000
less:disbursement 56,100
Excess(Deficiency) 24,900
Borrowings 5,100
ending cash balance 30,000
Answer) $5,100
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