Bantam Industries has budgeted the following information for March: Cash receipts Beginning cash balance Cash payments Desired ending cash balance $351,000 25,000 400,000 45,000 of the month in had no debt before If there is a cash shortage, the company borrows money from the bank. All cash is borrowed at the beginning $1,000 increments, and interest is paid monthly at 1% on the first day of the following month. The company March 1. How much cash will the company need to borrow in March?

Bantam Industries has budgeted the following information for March: Cash receipts Beginning cash balance Cash payments Desired ending cash balance $351,000 25,000 400,000 45,000 of the month in had no debt before If there is a cash shortage, the company borrows money from the bank. All cash is borrowed at the beginning $1,000 increments, and interest is paid monthly at 1% on the first day of the following month. The company March 1. How much cash will the company need to borrow in March?

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter6: Managing Cash Flow

Section: Chapter Questions

Problem 1EP

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