GigaTech Corporation has a cash balance of $22,500 on June 1. The company must maintain a minimum cash balance of $20,000. During June, expected cash receipts are $75,000. Cash disbursements during the month are expected to total $90,000. Ignoring interest payments, during June the company will need to borrow: ⚫ a. $12,500 ⚫ b. $10,500 ⚫ c. $15,000 • $13.000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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GigaTech Corporation has a cash balance of $22,500 on June 1. The company must maintain a
minimum cash balance of $20,000. During June, expected cash receipts are $75,000. Cash
disbursements during the month are expected to total $90,000. Ignoring interest payments,
during June the company will need to borrow:
⚫ a. $12,500
⚫ b. $10,500
⚫ c. $15,000
•
$13.000
Transcribed Image Text:GigaTech Corporation has a cash balance of $22,500 on June 1. The company must maintain a minimum cash balance of $20,000. During June, expected cash receipts are $75,000. Cash disbursements during the month are expected to total $90,000. Ignoring interest payments, during June the company will need to borrow: ⚫ a. $12,500 ⚫ b. $10,500 ⚫ c. $15,000 • $13.000
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