Question
AAA Company is preparing its 3rd quarter budget and provides the following data: Jul Aug Sep Cash collections $50,000 $40,000 $48,000 Cash payments: 56,000 56,000
AAA Company is preparing its 3rd quarter budget and provides the following data:
|
| Jul | Aug | Sep |
| Cash collections | $50,000 | $40,000 | $48,000 |
| Cash payments: | 56,000 | 56,000 | 29,600 |
Cash balance at June 30 is projected to be $4,000. The company is required to maintain a minimum cash balance of $5,000 and is authorized to borrow at the end of each month to make up any shortfalls. All financing transactions are assumed to take place at the end of the month.
How much, if any, will the company have to borrow at the end of July?
Group of answer choices
$7,000
$5,000
$0
$10,000
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Cost Analysis And Estimating Tools And Techniques
Authors: Willis R. Jr. Greer, Daniel A. Nussbaum
1990th Edition
0387973257, 978-0387973258
