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Romashka-Z-Leto [24]
3 years ago
13

For the month of november, whetzel corporation. predicts total cash collections to be $1 million. also for november, whetzel cor

poration. estimates that its beginning cash balance will be $50,000 and that it will borrow cash in the amount of $70,000. if whetzel corporation. estimates an ending cash balance of $30,000 for november, what must its projected cash disbursements be
Business
1 answer:
aivan3 [116]3 years ago
4 0
The projected cash disbursements for Whetzel Corporation for November is $1,090,000. This is calculated as follows: the beginning cash balance of $50,000 will be increased for the November cash collections of $1,000,000 and the cash borrowed of $70,000 (a cash inflow). This amount of total cash inflows would then be reduced by the total disbursements to get to the ending balance of $30,000. By subtracting the $30,000 ending balance from the above number we will get the total disbursements. See below:  
$50,000+$1,000,000+$70,000=$1,120,000
 $1,120,000-$30,000=$1,090,000 
 Check:
 $50,000+$1,000,000+$70,000-$1,090,000=$30,000 (agrees to ending balance)
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