Washam Company Must Maintain a Minimum Cash Balance of $25,000

question 50

Multiple Choice

Washam Company must maintain a minimum cash balance of $25,000.At the beginning of June the company's cash balance was $17,000.Budgeted cash receipts for June are $150,000 and budgeted cash disbursements are $201,000.Budgeted net income for July totals $11,000.How much will Washam Company need to borrow by the end of June?

• A)$43,000
• B)$34,000
• C)$9,000
• D)$59,000

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Definitions:

Systematic Thinking

Approaches problems in a rational and analytical fashion.

Programmed Decisions

Decisions that are made using a rule, procedure, or quantitative method that have been developed for recurring problems or situations.

Lack-Of-Participation Error

Lack-of-participation error occurs when important people are excluded from the decision-making process.

Rational Decision Model

A systematic, step-by-step approach to making decisions based on logical, objective analysis of data and alternatives.