Hello!

Would someone please break down the following? Please show your work

I have no idea how these formulas provide the numbers $281,998 and $107,424

- Simple algebra can be used to solve for the borrowing required in the first quarter as follows

Excess Cash (Deficiency) + Borrowing - Interest on Borrowing = Target cash balance

$(229,178) + X - 0.01X = $50,000

X = $281,998

- The second quarter of the cash budget is handled similarly

$(53,350) - $2,820 + X - 0.01X = $50,000

X = $107,424