Problem:
Cooper Apple Growers (CAG) is a major food cooperative. Suppose CAG begins 2011 with cash of $8 million. CAG estimates cash receipts during 2011 will total $103 million. Planned payments will total $86 million. To meet daily cash needs next year, CAG must maintain a cash balance of at least $20 million.
Required:
Question: Prepare the organization's cash budget for 2011.
Note: Please show how you came up with the solution.