Acorn Company wants to maintain a minimum monthly cash balance of $17,500. At the beginning of May, the cash balance is $19,500, expected cash receipts for May are $420,000, and the company had the following expenses: depreciation expense $19,750; interest expense $58,680; rent expense $63,560; salaries expense $294,550; office utilities expense $13,210.

1. Calculate Total Cash Disbursements. SHOW YOUR WORK. (4 pt)

2. How much cash, if any, must be borrowed to maintain the desired minimum monthly balance? SHOW YOUR WORK. (4 pt)

3. Prepare a cash budget. (2 pt)