Reference no: EM132983548
Question - Marsha Inc. has the following budgeted data for the coming year:
Cash balance, beginning $17,000
Collections from customers 147,000
Direct materials purchases 27,000
Expenses: Operating expenses 54,000
Payroll 77,000
Income taxes 6,000
Other: Machinery purchases 32,000
Operating expenses include $22,000 depreciation for buildings and equipment. All purchases of materials are paid for in the period of purchase. The company requires a minimum cash balance of $25,000.
Required - Compute the amount the company needs to finance or the excess cash available for Marsha to invest.