Question

After examining the records of Gamma Inc. for the month of December, the following information is obtained: Beginning cash balance $2,700 Cash receipts 60,000 Cash payments 37,000 Loan repayments 10,000 Based on the given information, compute Gamma's ending cash balance for the month of December. a.$15,700 b.$10,000 c.$(12,800) d.$(25,700)

Answer 1

a. $15,700

Step-by-step explanation:

We can compute the ending cash balance to be;

Ending cash balance = Cash available - Expected cash disbursement = (Beginning cash balance + Expected cash receipts) - Expected cash disbursement - repayments

Given that;

Beginning cash balance = $2,700

Expected cash receipts = $60,000

Expected cash disbursement = $37,000

Loan repayments = $10,000

Ending cash balance?

= ($2,700 + $60,000) - $37,000 - $10,000

= $62,700 -$37,000 - $10,000

= $15,700

Therefore, the ending cash balance is $15,700