On ACNE Company's cash budget for July, beginning cash balance was $5,600; expected cash receipts were $82,000 and expected cash payments were $83,500. A creditor of ACNE required a minimum cash balance of $5000 at the end of each month. ACNE could borrow in multiples of $1000 when needed. How much ACNE NEED to borrow at the end of July? Also, what would the ending cash balance be for July after borrowing?
On ACNE Company's cash budget for July, beginning cash balance was $5,600; expected cash receipts were $82,000 and expected cash payments were $83,500. A creditor of ACNE required a minimum cash balance of $5000 at the end of each month. ACNE could borrow in multiples of $1000 when needed. How much ACNE NEED to borrow at the end of July? Also, what would the ending cash balance be for July after borrowing?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:On ACNE Company's cash budget for July, beginning cash balance was $5,600;
expected cash receipts were $82,000 and expected cash payments were $83,500. A
creditor of ACNE required a minimum cash balance of $5000 at the end of each
month. ACNE could borrow in multiples of $1000 when needed. How much ACNE
NEED to borrow at the end of July? Also, what would the ending cash balance be for
July after borrowing?
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