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Question
Best Goods management wants to maintain a minimum monthly cash balance of $11,200. At the beginning of September, the cash balance is $17,178, expected cash receipts for September are $136,080, and cash disbursements are expected to be $161,000.
How much cash, if any, must Best Goods borrow to maintain the desired minimum monthly balance? Determine your answer by using the basic form of the cash budget.
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