Reference no: EM132949011

Your Company is currently preparing its cash budget for next month and has gathered the following information:

Expected cash receipts..............................$39,400

Expected cash disbursements:

Direct materials......................................$12,000

Direct labor.............................................$9,000

Manufacturing overhead........................$11,500

Selling and administrative expenses......$22,000

Depreciation...........................................$7,500

Problem 1: The beginning cash balance will be $7,000 and the company requires a minimum cash balance at the end of the month of $10,000. How much will Your Company need to borrow to meet its cash needs for the month?