Question

Sedita Inc. is working on its cash budget for July. The budgeted beginning cash balance is $21,000. Budgeted cash receipts total $193,000 and budgeted cash disbursements total $192,000. The desired ending cash balance is $37,000. The excess (deficiency) of cash available over disbursements for July will be: Multiple Choice $22,000 $1,000 $20,000 $214,000

Answer 1

$22,000 excess

Step-by-step explanation:

The excess (deficiency) of cash available over disbursements = budgeted beginning cash balance + Total budgeted cash receipts - Total budgeted cash disbursements

The excess (deficiency) of cash available over disbursements = $21,000 + $193,000 - $192,000 = $22,000 excess

The excess of cash available over disbursements for July will be $22,000.