Question

Compute the respective net cash flows and cumulative cash balances for the months indicated on the following cash budget for six months. January, February, March, April, May, June. Sales receipts: 300350, 300350, 400300. Cash disbursements: 200175, 210295, 375300. Net cash flows: 100, 175, 90, 55, 25, 0. Cumulative cash balances: 420, 420, 420, 420, 420, 420.

Answer 1

The net cash flows and cumulative cash balances for the months indicated in the cash budget are as follows: January: $100 net cash flow, $420 cumulative cash balance. February: $175 net cash flow, $420 cumulative cash balance. March: $90 net cash flow, $420 cumulative cash balance. April: $55 net cash flow, $420 cumulative cash balance. May: $25 net cash flow, $420 cumulative cash balance. June: $0 net cash flow, $420 cumulative cash balance.

Step-by-step explanation:

The net cash flows for the months indicated in the cash budget are as follows:

• January: $100
• February: $175
• March: $90
• April: $55
• May: $25
• June: $0

The cumulative cash balances for the months indicated in the cash budget are:

• January: $420
• February: $420
• March: $420
• April: $420
• May: $420
• June: $420