Grafton Is Preparing a Cash Budget for June

question 99

Multiple Choice

Grafton is preparing a cash budget for June. The company has $25,000 cash at the beginning of June and anticipates $95,000 in cash receipts and $111,290 in cash disbursements during June. Compute the amount the company must borrow, if any, to maintain a $20,000 cash balance. The company has no loans outstanding on June 1.

• A) $28,710.
• B) $12,290.
• C) $16,290.
• D) $11,290
• E) $6,290.

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