Preparing a cash budget, Northern Company is preparing a

Preparing a cash budget

Assignment Help Financial Accounting

Reference no: EM13788011

Northern Company is preparing a cash budget for June. The company has $15,000 cash at the beginning of June and anticipates $39,000 in cash receipts and $45,000 in cash disbursements during June. Northern Company has an agreement with its bank to maintain a cash balance of at least $13,000 As of May 31, the company owes $19,500 to the bank. To maintain the $13,000 required balance, during June the company must:

Borrow $4,000

Borrow $6,000

Repay $4,000

Borrow $13,000

Repay $9,000

Reference no: EM13788011

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