Question

Qn=86 during the month of february, hoffer company had cash receipts of $7,500 and cash disbursements of $8,600. the february 28 cash balance was $1,800. what was the january 31 beginning cash balance? a. $700. b. $1,100. c. $2,900. d. $0. e. $4,300.

Answer 1

The beginning cash balance for Hoffer Company on January 31 is calculated by using the equation: Beginning Balance + Cash Receipts - Cash Disbursements = Ending Balance. By substituting the given values, the answer is found to be $2,900

Step-by-step explanation:

To find the January 31 beginning cash balance, we need to calculate the net cash flow for the month of February.

Net cash flow = cash receipts - cash disbursements

Net cash flow = $7,500 - $8,600 = -$1,100

Since the February 28 cash balance is $1,800 and the net cash flow for February is -$1,100, the January 31 beginning cash balance can be calculated as:

January 31 beginning cash balance = February 28 cash balance - net cash flow

January 31 beginning cash balance = $1,800 - (-$1,100) = $2,900

Therefore, the answer is $2,900.