Question

Mosbey Inc. is working on its cash budget for June. The budgeted beginning cash balance is $16,000. Budgeted cash receipts total $188,000 and budgeted cash disbursements total $187,000. The desired ending cash balance is $40,000. The excess (deficiency) of cash available over disbursements for June will be:

A. $15,000
B. $1,000
C. $17,000
D. $204,000

Answer 1

The excess of cash available over disbursements for June for Mosbey Inc. is $17,000 after accounting for the beginning balance, receipts, and disbursements.

Step-by-step explanation:

To calculate the excess (deficiency) of cash available over disbursements for June for Mosbey Inc., we need to consider the following information:

• Beginning cash balance: $16,000
• Total budgeted cash receipts: $188,000
• Total budgeted cash disbursements: $187,000
• Desired ending cash balance: $40,000

To find the excess or deficiency, we perform the following calculation:

1. Add the beginning cash balance to the total cash receipts.
2. Subtract the total cash disbursements from the sum obtained in step 1.

Doing the math:

$16,000 + $188,000 = $204,000

$204,000 (total cash available) - $187,000 (disbursements) = $17,000

The excess of cash available over disbursements for June will be $17,000.

This means that after accounting for all receipts and disbursements, the company will have $17,000 more than what it needs to cover its disbursements for June.