Question

Rogers Corporation is preparing its cash budget for July. The budgeted beginning cash balance is $25,000. Budgeted cash receipts total $141,000 and budgeted cash disbursements total $139,000. The desired ending cash balance is $30,000. The excess (deficiency) of cash available over disbursements for July is: $23,000 $2,000 $166,000 $27,000

Answer 1

Available cash will be $27000

So option (d) will be the correct answer

Step-by-step explanation:

We have given opening cash balance = $25000

Budgeted cash receipts = $141000

Total cash available = $25000+$41000 = $166000

Total cash payment = $139000

We have to find the cash available after outflow

So available cash after outflow is given by

Total cash available - total cash payment = $166000-$139000 = $27000

So option (d) will be the correct answer