Freet Inc Is Preparing Its Cash Budget for November

Essay

Freet Inc. is preparing its cash budget for November. The budgeted beginning cash balance is $11,000. Budgeted cash receipts total $126,000 and budgeted cash disbursements total $130,000. The desired ending cash balance is $20,000. The company can borrow up to $170,000 at any time from a local bank, with interest not due until the following month.
Required:
Prepare the company's cash budget for November in good form. Make sure to indicate what borrowing, if any, would be needed to attain the desired ending cash balance.