Following on from my previous question: I know that if the closing balance in the cash budget is higher than the required amount the company needs, you do not need to borrow anything. However, in this case the question tells me that January's opening balance is 150,000 and a required closing balance of 300,000 is needed. It's asking me to create a cash budget for January, February and March but surely I need to borrow money immediately in january as clearly the December closing balance was only 150,000 if my January opening was 150,000.

My closing balance for January was 400,000 so I know that's fine but I'm confused how last month (December) ended on 150,000 which the question states