The Three Bears Company is preparing a cash budget for January. The cash at the beginning...
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The Three Bears Company is preparing a cash budget for January. The cash at the beginning of the month is $12,000. The expected cash receipts are $60,000, the expected expenses are $45,000, which includes $3,000 of depreciation. They are also going to purchase new office equipment for cash in the amount of $20,000. Management wants to have a minimum cash balance at the end of the month of $15,000. Will the Three Bears have to borrow money for January? If so how much? The Three Bears Company is preparing a cash budget for January. The cash at the beginning of the month is $12,000. The expected cash receipts are $60,000, the expected expenses are $45,000, which includes $3,000 of depreciation. They are also going to purchase new office equipment for cash in the amount of $20,000. Management wants to have a minimum cash balance at the end of the month of $15,000. Will the Three Bears have to borrow money for January? If so how much?
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