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Bantam Industries Has Budgeted the Following Information for March If There Is a Cash Shortage,the Company Borrows Money from \text

question 51

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Bantam Industries has budgeted the following information for March:  Cash receipts $271,000 Beginning cash balance 5,000 Cash payments 280,000 Desire dending cash balance 25,000\begin{array}{|l|r|}\hline \text { Cash receipts }& \$ \quad 271,000\\\hline \text { Beginning cash balance } & 5,000 \\\hline \text { Cash payments } & 280,000 \\\hline \text { Desire dending cash balance } & 25,000\\\hline\end{array} If there is a cash shortage,the company borrows money from the bank.All cash is borrowed at the beginning of the month in $1,000 increments and interest is paid monthly at 1% on the first day of the following month.The company had no debt before March 1st.How much cash will the company need to borrowed in March?

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Definitions:

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