Reference no: EM132490967

Question - Marsha, Inc., has the following budgeted data for 2016:

Cash balance, beginning $15,000

Collections from customers 145,000

Direct materials purchases 25,000

Expenses:

Operating expenses 50,000

Payroll 75,000

Income taxes 6,000

Other:

Machinery purchases 30,000

Operating expenses include $20,000 depreciation for buildings and equipment. All purchases of materials are paid for in the period of purchase. The company has recently increased its minimum required cash balance from $15,000 to $25,000.

Required - Compute the amount the company needs to finance or the excess cash available for Marsha to invest.