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Jul Kennison, Inc. has prepared its third quarter budget and provided the following data: Aug Sep Cash collections $49,000 $3

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Answer #1

Cash balance at the end of Jul = $4,100 + $49,000 - $28,000 - $12,300 - $13,800 = -$1,000

$10,000 should be borrowed at the end of Jul to maintain minimum cash balance of $5,000 at the end of the month.

Balance = -$1,000 + $10,000 = $9,000

Cash balance at the end of Aug = $9,000 + $39,500 - $21,800 - $9,100 - $24,700 = -$7,100

$15,000 should be borrowed at the end of Aug to maintain minimum cash balance of $5,000 at the end of the month.

Option D. $15,000

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