Question

Sedita incorporated is working on its cash budget for july. the budgeted beginning cash balance is $16,000. budgeted cash receipts total $177,000 and budgeted cash disbursements total $176,000. the desired ending cash balance is $45,000. the excess (deficiency) of cash available over disbursements for july will be: multiple choice

O $17,000
O $15,000
O $1,000
O $193,000

Answer 1

The correct answer is option 1. The excess (deficiency) of cash available over disbursements for July for Sedita Incorporated is $17,000. This is calculated by adding the budgeted beginning cash balance and cash receipts and then subtracting the cash disbursements.

Step-by-step explanation:

The student has asked about calculating the excess (deficiency) of cash available over disbursements for July for Sedita Incorporated using the information provided in a cash budget. To determine this, we must consider the budgeted beginning cash balance, budgeted cash receipts, budgeted cash disbursements, and the desired ending cash balance. The formula to calculate the excess or deficiency is to take the budgeted beginning cash balance, add the budgeted cash receipts, and then subtract the budgeted cash disbursements. This gives us the excess (deficiency) of cash availablebefore considering the desired ending cash balance.

To calculate the excess (deficiency) of cash available for July:

Excess (Deficiency) of Cash Available = Budgeted Beginning Cash Balance + Budgeted Cash Receipts - Budgeted Cash Disbursements

Excess (Deficiency) of Cash Available = $16,000 + $177,000 - $176,000

Excess (Deficiency) of Cash Available = $17,000

The correct answer is therefore the $17,000 option, which reflects the excess cash available over the disbursements for July, without taking into account the desired ending cash balance.