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 • d. $13,000
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 • d. $13,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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
•
d. $13,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd416b8e0-7a1e-4746-9a5e-edea10ecfcbf%2F9624fafb-0760-4da9-afcd-5a419bc90057%2Fn0fv3y_processed.jpeg&w=3840&q=75)
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
•
d. $13,000
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