On january 1, bonita industries has a beginning cash balance of $4. during the year, the company expects cash disbursements of $3 and cash receipts of $24. if bonita requires an ending cash balance of $42000, the company must borrow

company must borrow =  $66,000

Explanation:

given data

beginning cash balance = $40000

expects cash disbursements = $300000

cash receipts = $240000

ending cash balance = $42000

to find out

company must borrow

solution

first we get here Ending Balance that will be as

Ending Balance = beginning cash balance + cash receipts - expects cash disbursements  1

put here value we get

Ending Balance = $40000 + $240000 - $300000

Ending Balance = -$24000

so company must borrow = $42,000 + $24,000

company must borrow =  $66,000

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