微信扫一扫
实时资讯全掌握
The Mountain Mule Glove Company is in its first year of business. Mountain Mule had a beginning cash balance of $85,000 for the quarter. The company has a $50,000 short-term line of credit. The budgeted information for the first quarter is shown below.  All sales are made on credit and are collected in the second month following the sale. Purchases are paid in the month following the purchase, while operating costs are paid in the month that they are incurred. How much will Mountain Mule need to borrow at the end of the quarter if the company needs to maintain a minimum cash balance of $5,000, as required by a loan covenant agreement?A. $0 B. $5,000 C. $10,000 D. $45,000 |