Deschambault Inc. is working on its cash budget for December. The budgeted beginning cash balance is $14,000.

Question:

Deschambault Inc. is working on its for December. The budgeted beginning cash balance is $14,000. Budgeted cash receipts total $127,000 and budgeted cash disbursements total $126,000. The desired ending cash balance is $40,000. To attain its desired ending cash balance for December, the company needs to borrow:
A) $25,000
B) $0
C) $55,000
D) $40,000

Cash Budget
A cash budget is an estimation of the cash flows for a business over a specific period of time. These cash inflows and outflows include revenues collected, expenses paid, and loans receipts and payment. Its primary purpose is to provide the...