waggoner company

Waggoner Company has a cash balance of $36,000 on April 1. The company is required to maintain a minimum cash balance of $24,000. During April expected cash receipts are $180,000. Expected cash disbursements during the month total $208,000. During April the company will need to borrow:

Cash balance April 1	36000
Ass : Expected cash receipts	180000
Total cash available	216000
Less expected cash disbursement	208000
Cash balance April 30	8000
Minimum cash balance required	24000
Amount to be borrowed ( 24000 - 8000)	16000