Question

Beginning and ending Cash account balances of Rainbow, Inc. were $14,000 and $32,000 respectively. If total cash paid out during the period was $30,000, what amount of cash was received during the period

Answer 1

Cash receipts = $48,000

Step-by-step explanation:

A cash budget is statement that shows the estimated cash receipts and the estimated cash payments for a forth coming accounting period. In addition, it provides information about the expected cash balance for the period to which it relates.

With help of a cash budget, a business can plan ahead for the usage of its surplus funds and how to finance its deficit cash position

Cash balance at the end = Opening cash balance + cash receipts - cash payment

Let represent the cash receipts by " y "

32,000 = 14,000 + y - 30,000

32,000 = y - 16 ,000

32,000 + 16,000 = y

48000 = y

Cash receipts = $48,000