Question: Priority Workforce is preparing its cash budget for November. It ended the month of October with a cash balance of $42,000. It has budgeted cash

Priority Workforce is preparing its cash budget for November. It ended the month of October with a cash balance of $42,000. It has budgeted cash receipts of $176,000 and cash disbursements of $185,000 during the month. It desires to end November with a cash balance of at least $50,000. It has no debt today but can borrow on a line of credit up to $120,000 at any time with interest not due until the following month. Will the company need to borrow on its line of credit in November and if so, how much will it need to borrow?

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