Wehr Inc. is preparing its cash budget for April. The budgeted beginning cash balance is $26,000. Budgeted cash receipts total $98,000 and budgeted cash disbursements total $105,000. The desired ending cash balance is $50,000. The company can borrow up to $120,000 at any time from a local bank with interest not due until the following month.
Required:
Prepare the company’s cash budget for April in good form. Make sure to indicate what borrowing, if any, would be needed to attain the desired ending cash balance.
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