Mink Company is preparing a cash budget for February. The company has $30,000 cash at the beginning

Question:

Mink Company is preparing a for February. The company has $30,000 cash at the beginning of February and anticipates $75,000 in cash receipts and $96,250 in cash disbursements during February. What amount, if any, must the company borrow during February to maintain a $10,000 cash balance? The company has no loans outstanding on February 1.

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...