Payment Inc. is making its cash budget for February. The budgeted beginning cash balance is $27,000. Budgeted cash receipts total $136,000 and budgeted cash disbursements total $128,000. The desired ending cash balance is $50,000. The company can borrow up to $110,000 at any time from a local bank, with interest not due till the given month.
Required:
Develop the company's cash budget for February in good form. Make sure to point out what borrowing, if any, would be required to attain the desired ending cash balance.