Assignment task: Maintaining a Cash Balance
You recently began work as a senior accountant at Mad Coffee Company. You learned that you would be responsible for monitoring the cash balance because there is a bank loan requirement that a minimum balance of $10,000 be maintained with the bank at all times. You asked the CFO to see the cash budget so you could anticipate when the balance was most likely to go below $10,000. In a paragraph or two, how can you determine potential cash balance issues by looking at the budget?