Question

Zolezzi Inc. is preparing its cash budget for March. The budgeted beginning cash balance is $21,000. Budgeted cash receipts total $112,000 and budgeted cash disbursements total $91,000. The desired ending cash balance is $55,000. The company can borrow up to $90,000 at any time from a local bank, with interest not due until the following month. Required: Prepare the company's cash budget for March in good form. Make sure to indicate what borrowing, if any, would be needed to attain the desired ending cash balance. Beginning cash balance Add cash receipts Total cash available Less cash disbursements Excess (deficiency) of cash available over disbursements Borrowings Ending cash balance

Answer 1

Beginning cash balance	$    21,000
Add: Cash receipts	$ 112,000
Total cash available	$ 133,000
Less: Cash disbursments	$ (91,000)
Excess (deficiency) of cash available over disbursments	$    42,000
Borrowings ($55,000-$42,000)	$    13,000
Ending cash balance	$    55,000

You can reach me over comment box if you have any doubts. Please rate this answer