Webster Corporation Is Preparing Its Cash Budget for April

Webster Corporation is preparing its cash budget for April. The March 31 cash balance is $36,400. Cash receipts are expected to be $641,000 and cash payments for purchases are expected to be $608,500. Other cash expenses expected are $27,000 selling and $33,500 general and administrative. The company desires a minimum cash balance at the end of each month of $30,000. If necessary, the company borrows enough cash to meet the minimum using a short-term note.
-The amount Webster must borrow during April is:

A) $98,900.
B) $0.
C) $8,400.
D) $21,600.
E) $58,000.

Correct Answer:

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