Webster Corporation is preparing its cash budget for April T

Webster Corporation is preparing its cash budget for April. The March 31 cash balance is $35,500. Cash are expected to be $632,000 and cash payments for purchases are expected to be $599,500. Other cash expenses e desires a minimum cash balance at the end of each month of $21,000. If necessary, the company borrows enough cash to meet the minlmum cash balance using a short-term note. Webster\'s prellminary cash balance before loan activity for April Is expected to be: d are $26,100 selling and $32,600 general and administrative. The company O $9,300 O $11.700 O $21,000 O ($26.200). $68.000.

Solution

Calculate preliminary cash balance for april :

So answer is a) $9300

Beginning cash balance	35500
Cash receipt	632000
Total cash available	667500
Cash payment for purchase	-599500
Other cash expense (26100+32600)	-58700
Total cash disbursement	-658200
Preliminary cash balance	9300