Determine required balance


Problem:

A Company is preparing a cash budget for June. The company has $77,050 cash at the beginning of June and anticipates $94,690 in cash receipts and $107,530 in cash disbursements during June. This company has an agreement with its bank to maintain a cash balance of at least $74,750. As of May 31, the company owes $28,000 to the bank. To maintain the $74,750 required balance, during June the company must:

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Accounting Basics: Determine required balance
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