Western Company is preparing a cash budget for June. The company has $11,000 in cash at the beginning of June and anticipates $31,000 in cash receipts and $36,500 in cash payments during June. Western Company has an agreement with its bank to maintain a minimum cash balance of $10,000. As of May 31, the company has no loans outstanding. To maintain the $10,000 required balance, during June the company must: Multiple Choice O O Repay $4,500. Repay $5,500. Borrow $5,500. T Borrow $10,000. Borrow $4,500.
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.
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![Western Company is preparing a cash budget for June. The company has $11,000 in cash at the beginning of June and anticipates $31,000 in cash receipts and $36,500 in cash payments during June. Western
Company has an agreement with its bank to maintain a minimum cash balance of $10,000. As of May 31, the company has no loans outstanding. To maintain the $10,000 required balance, during June the
company must:
Multiple Choice
Repay $4,500.
Repay $5,500.
Borrow $5,500.
Borrow $10,000.
Borrow $4,500.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F66812b29-b126-47f7-8df3-fde8630ed77a%2F68b7e646-051c-4e31-9b8c-4469d213c3d3%2F9rgvdph_processed.png&w=3840&q=75)
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