Question

Einstein Company is preparing its cash budget for the upcoming month. The beginning cash balance for the month is expected to be $ 15 comma 000. Budgeted cash receipts are $ 82 comma 000​, while budgeted cash disbursements are $ 68 comma 000. Einstein Company wants to have an ending cash balance of $ 15 comma 000. The excess​ (deficiency) of cash available over disbursements for the month would be

Answer 1

The excess cash balance available over disbursements for the month would be $29000

Step-by-step explanation:

Calculation of the cash available over the distribution for the month is as follows:

Particulars Amount

(In dollars)

begining cash balance 15000

Cash receipts 82000

Total cash 97000

Less: cash disbursements 68000

Excess cash available 29000

therefore, the excess cash available is $29000

Even though the company wants a balance of cash at the ending to be $15000, there is excess of cash balance than that. Even after deducting the cash disbursements, a company has a surplus amount of cash in its account to be shown in the books of accounts.