Question: Costa Services, Inc., has $ 8 , 1 0 0 cash on hand on May 1 . The company requires a minimum cash balance of

Costa Services, Inc., has $8,100 cash on hand on May 1. The company requires a minimum cash balance of $7,000. May cash
collections are $548,380. Total cash payments for May are $573,900. Prepare a cash budget for May. How much cash, if any, will
Costa need to borrow by the end of May?
Complete the cash budget below. (Use parentheses or a minus sign for negative ending cash balances or deficiencies.)
Costa Services, Inc.
Combined Cash Budget
For the Month Ended May 31
Beginning cash balance
Plus: Cash collections
Total cash available
Less: Cash payments
Ending cash balance before financing
Plus: New borrowings
Ending cash balance
Costa Services, Inc., has $8,100 cash on hand on May 1.

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