Webster corporation is preparing its cash budget for april. the march 31 cash balance is $37,000. cash receipts are expected to be $647,000 and cash payments for purchases are expected to be $614,500. other cash expenses expected are $27,600 selling and $34,100 general and administrative. the company desires a minimum cash balance at the end of each month of $36,000. if necessary, the company borrows enough cash to meet the minimum using a short-term note. webster's preliminary cash balance before loan activity for april is expected to be

Webster's preliminary cash balance before loan activity for April is arrived by starting with beginning cash balance then add the cash receipts and then deduct all the cash payments from them .

Beginning cash balance = $ 37,000

(+) Cash receipts = $ 647,000

Total = $ 684,000

(-) Cash payments:-

Purchases $ 614,500

Expenses $ 27,600

Selling Exp $ 34,100 $ 676,200

Preliminary cash balance before loan is $ 7,800

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answer; lags, push the econ below the natural level of output;