Urban Industries needs to maintain a minimum cash balance of $10,000 and has entered into an agreement with their bank to accomplish this. Urban is preparing a cash budget for September. Urban has $11,300 in cash at the beginning of September and anticipates $30,700 in cash receipts and $35,900 in cash payments during September. As of August 31, the company has no loans outstanding. To maintain the $10,000 required balance, during September the company must: O A. Borrow $3,900. OB. Borrow $10,000. O C. Borrow $5,200. OD. Repay $3,900. OE.Repay $6,100.
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.
![Urban Industries needs to maintain a minimum cash balance of $10,000 and has entered into an agreement with their bank to
accomplish this. Urban is preparing a cash budget for September. Urban has $11,300 in cash at the beginning of September and
anticipates $30,700 in cash receipts and $35,900 in cash payments during September. As of August 31, the company has no loans
outstanding. To maintain the $10,000 required balance, during September the company must:
O A. Borrow $3,900.
O B. Borrow $10,000.
OC. Borrow $5,200.
OD. Repay $3,900.
OE.Repay $6.100.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F10556e9b-a336-4f68-9d63-bf933f60f82a%2Fdfa63783-e412-4ec7-9d72-b05243de469c%2F4zkwir_processed.jpeg&w=3840&q=75)
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