In September, the capital expenditure budget of ABC Corp. Indicates a P140,000 purchase of equipment. The ending September cash balance from operations is budgeted at P20,000. The company wants to maintain a minimum cash balance of P10,000. What is the minimum cash loan that must be planned by ABC Corp borrowed from the bank in September?

Entrepreneurial Finance
6th Edition
ISBN:9781337635653
Author:Leach
Publisher:Leach
Chapter6: Managing Cash Flow
Section: Chapter Questions
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In September, the capital expenditure budget of ABC Corp. Indicates a P140,000 purchase of equipment. The ending September cash balance from operations is budgeted at P20,000. The company wants to maintain a minimum cash balance of P10,000. What is the minimum cash loan that must be planned by ABC Corp borrowed from the bank in September?
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