Question

Rogers ​Services, Inc., has $ 8 comma 100 cash on hand on October 1. The company requires a minimum cash balance of $ 7 comma 200. October cash collections are $ 548 comma 600. Total cash payments for October are $ 563 comma 800. Prepare a cash budget for October. How much​ cash, if​ any, will Rogers need to borrow by the end of October​? Complete the cash budget below. ​(Use parentheses or a minus sign for negative ending cash balances or​ deficiencies.) Rogers Services, Inc. Combined Cash Budget For the Month Ended October 31 Beginning cash balance Plus: Cash collections Total cash available Less: Cash payments Ending cash balance before financing Minimum cash balance desired Cash excess (deficiency)

Answer 1

Rogers ​Services, Inc

Cash budget for the month ended 31 October

Amount in $

Beginning cash balance 8,100

Plus:

Cash collections 548,600

Total cash available 556,700

Less:

Cash payments (563,800)

Ending cash balance before financing (7,100)

Minimum cash balance desired 7,200

Cash excess (deficiency) (14,3000)

Step-by-step explanation:

A Cash budget is a forecast of the net cash flows to/from an entity over a given period of time.

Details of the cash budget include the opening cash balance, the expected expenses or outflows of cash, the expected inflows and the closing balance expected as a result of the 3 elements mentioned earlier.