Question

Sedita Inc. is working on its cash budget for July. The budgeted beginning cash balance is $18,000. Budgeted cash receipts total $175,000 and budgeted cash disbursements total $174,000. The desired ending cash balance is $49,000. The excess (deficiency) of cash available over disbursements for July will be:

Answer 1

Answer:

$30,000 excess

Explanation:

Beginning cash balance + Budgeted receipts - Budgeted disbursements + excess/deficiency = desired ending balance

$18,000 + $175,000 - $174,000 + $X = $49,000

$19,000 + $X                                       = $49,000

$X                                                         = $49,000 - $19,000

$X                                                         = $30,000