Calculation of requirement of cash to be maintained.
The Wallace Company must maintain a minimum cash balance of $30,000. At the beginning of February the company's cash balance was $50,000. The budget for February is as follows:
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Cash receipts
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$290,000
|
|
Cash disbursements
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$245,000
|
|
Cash dividend
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$30,000
|
|
Purchase machinery
|
$55,000
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In February the Wallace Company will need to borrow?