Marsha Corporation expects $2,800,000 in cash receipts this year and has $2,600,000 budgeted in cash disbursements.  Marsha begins the year with $500,000 in cash and has a policy of keeping 15% of next year's sales in the ending cash balance for the year? Next year's sales are budgeted at $8,500,000? Will Marsha Corporations have to borrow money and if so, how much?

Answer rating: 100% (QA)

Solution Calculation of the amount to be borrowed Budgeted ... View the full answer