Question 21

During December, the capital budget indicates a $279200 purchase of equipment for cash. The ending November cash balance is budgeted to be $40400. Cash receipts are $840400, and cash disbursements are $609000 during December. The company wants to maintain a minimum cash balance of $20700. What is the minimum cash loan that must be planned to be borrowed from the bank during December?

$7400

$28100

$0

$47800