Question

Use the following information to determine the ending cash balance to be reported on the month ended June 30 cash budget. a. Beginning cash balance on June 1, $94,000. b. Cash receipts from sales, $413,000. c. Budgeted cash disbursements for purchases, $268,000. d. Budgeted cash disbursements for salaries, $95,000. e. Other budgeted cash expenses, $57,000. f. Cash repayment of bank loan, $32,000. g. Budgeted depreciation expense, $34,000.

Answer 1

The ending cash balance for the June 30th cash budget is calculated by starting with the beginning balance, adding cash receipts, and subtracting cash disbursements, excluding the non-cash depreciation expense. The ending cash balance would be $55,000.

Step-by-step explanation:

To determine the ending cash balance for the cash budget ending June 30th, we need to take into account the beginning balance and all of the cash inflows and outflows during the month. Here is the computation:

• Beginning cash balance on June 1: $94,000
• Add: Cash receipts from sales: $413,000
• Subtract: Budgeted cash disbursements for purchases: $268,000
• Subtract: Budgeted cash disbursements for salaries: $95,000
• Subtract: Other budgeted cash expenses: $57,000
• Subtract: Cash repayment of bank loan: $32,000

Depreciation expense is a non-cash expense, so it is not considered in a cash budget.

Here's the calculation:

Beginning Balance: $94,000
+ Cash Receipts: $413,000
- Purchases: $268,000
- Salaries: $95,000
- Other Expenses: $57,000
- Loan Repayment: $32,000
-------------------
Ending Balance: $55,000

Therefore, the ending cash balance on the cash budget would be $55,000.

Answer 2

$21000

Step-by-step explanation:

$94000

$413000

($268000)

($95000)

($57000)

($32000)

($34000)

=$21000