How much cash is desired to minimum monthly balance


Problem:

Batista Company management wants to maintain a minimum monthly cash balance of $20,000. At the beginning of April, the cash balance is $22,000, expected cash receipts for April are $245,000, and cash disbursements are expected to be $256,000. How much cash, if any, must be borrowed to maintain the desired minimum monthly balance?

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Accounting Basics: How much cash is desired to minimum monthly balance
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