Question

In the cash budget for your company, you have a negative net cash flow equal to -$62,000 for January. January's beginning cash balance is $200,000. What is the available balance for the month?

a)$76,000
b)$124,000
c)$24,000
d)$100,000

Answer 1

The available balance for the month is $262,000.

Step-by-step explanation:

In the cash budget for your company, a negative net cash flow of -$62,000 means that your total cash inflows are less than your total cash outflows by $62,000. To calculate the available balance for the month, you need to subtract the negative net cash flow from the beginning cash balance. Therefore, the available balance for the month is:

$200,000 - (-$62,000) = $200,000 + $62,000 = $262,000

So, the available balance for the month is $262,000.