Question

Zolezzi Inc. is preparing its cash budget for March. The budgeted beginning cash balance is $15,000. Budgeted cash receipts total $106,000 and budgeted cash disbursements total $97,000. The desired ending cash balance is $40,000. The company can borrow up to $80,000 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	15,000
Add cash receipts	106,000
Total cash available	121,000
Less cash disbursements	97,000
Excess(Deficiency)	24,000
Borrowings (40,000-24,000)	16,000
Ending cash balance	40,000