Western company is preparing a cash budget for june. the company has $12,000 in cash at the beginning of june and anticipates $30,000 in cash receipts and $34,500 in cash payments during june. western company has an agreement with its bank to maintain a minimum cash balance of $10,000. as of may 31, the company has no loans outstanding. to maintain the $10,000 required balance, during june the company must:

a. repay $2,500.
b. repay s7,500.
c. borrow $4,500.
d. borrow $2,500.
e. borrow $10,000.

Borrowing require = $2,500

so correct option is d.Borrow $2,500

Explanation:

given data

cash at beginning = $12,000

cash receipts anticipates = $30,000

cash payments = $34,500

minimum cash balance = $10,000

required  balance = $10,000

to find out

To maintain the $10,000 required balance

solution

we get here cash at the end of the year that is

cash at the end of the year = Beginning cash balance + Cash Receipts - cash payments  1

cash at the end of the year = $12000 + $30000 - $34500

cash at the end of the year = $7500

and

we know minimum cash balance maintained is $10,000

so Borrowing require is here as

Borrowing require = $10000 - $7500

Borrowing require = $2,500

so correct option is d.Borrow $2,500

false. insurance companies differ from the pricing to the different deals you can get.

d, conspicuous consumption is when you try to increase your wealth or social status (and in the case he's trying to create the perception of wealth considering he can't really afford it)