The following assumptions are related to the Cash Budget for Widget Inc.

Widget must maintain a minimum $30,000 cash balance

Widget must borrow/repay from the bank in increments of $5000

If they borrow money, they borrow at the END of month

Further information about cash flows in the month of October:

• Cash Available:
  • Beginning Cash (Oct 1): $50,000
  • Cash Receipts in October: $115,000
• Cash Disbursements during October:
  • S&A expenses: $22,000
  • Inventory purchases: $47,000
  • Building Purchase: $250,000

1. How much excess or deficiency of cash will Widget have in October? (if a deficiency, please put a negative sign "-" in front of the answer)

2. Use the same information as in Question 1

If needed, how much cash will Widget need to borrow in the month of October?

(just enter the number, no number signs or commas)

Choose True for free points

True

False