Bantam Industries has budgeted the following information for March: Cash receipts Beginning cash balance Cash payments Desired ending cash balance If there is a cash shortage, the company borrows money from the bank. All cash is borrowed at the beginning of the month in $1,000 increments, and interest is paid monthly at 1% on the first day of the following month. The company had no debt before March 1. How much cash will the company need to borrow in March? Multiple Choice $13,000 $65,000 $ 343,000 23,000 388,000 43,000 $52,000 The company should not need to borrow any cash In March
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
![Bantam Industries has budgeted the following information for March:
Cash receipts
Beginning cash balance
Cash payments
Desired ending cash balance
If there is a cash shortage, the company borrows money from the bank. All cash is borrowed at the beginning of the month in $1,000 increments, and interest is paid
monthly at 1% on the first day of the following month. The company had no debt before March 1. How much cash will the company need to borrow in March?
Multiple Choice
$13,000
$65,000
$ 343,000
23,000
388,000
43,000
$52,000
The company should not need to borrow any cash In March](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8d494b17-8b36-49e0-a6a1-3408f9cee0a7%2Fee877f9f-1d4e-45bb-828b-5c21aa473638%2Fxi49y0o_processed.png&w=3840&q=75)
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