Bustillo Incorporated is working on its cash budget for March. The budgeted beginning cash balance is $35,000. Budgeted cash receipts total $142,000 and budgeted cash disbursements total $151,000. The desired ending cash balance is $30,000. To attain its desired ending cash balance for March, the company needs to borrow:

$4,000

Explanation:

Bustillo Incorporated

Cash Budget

For the month of March, 202x

Beginning cash balance                  $35,000

Total cash collections                     $142,000

Total cash disbursements             ($151,000)

Ending cash before financing         $26,000

Desired minimum cash balance    ($30,000)

Financing needs                               ($4,000)

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