Question

MC Qu. 110 Southland Company is preparing... Southland Company is preparing a cash budget for August. The company has $17,400 cash at the beginning of August and anticipates $121,600 in cash receipts and $134,900 in cash disbursements during August. Southland Company wants to maintain a minimum cash balance of $10,000. The preliminary cash balance at the end of August before any loan activity is:

Answer 1

$4,100

Explanation:

Data provided as per the question is below

Cash balance in beginning = $17,400

Cash receipts = $121,600

Cash disbursement = $134,900

The computation of cash balance is shown below:-

Cash balance = Cash balance in beginning + Cash receipts - Cash disbursement

= $17,400 + $121,600 - $134,900

= $139,000 - $134,900

= $4,100