Question

Use the following information for #22 and #23: Bries Corporation is preparing its cash budget for January. The budgeted beginning cash balance is $18,000. Budgeted cash receipts total $183,000 and budgeted cash disbursements total $188,000. The desired ending cash balance is $30,000.
22. The excess (deficiency) of cash available over disbursements for January is: A. $23,000 B. $13,000 C. ($5,000) D. $201,000

23. To attain its desired ending cash balance for January, the company should borrow: A. $17,000 B. $0 C. $30,000 D. $43,000

Answer 1

Answer:

22. Option (B) is correct

23. Option (A) is correct

Explanation:

22.

Total Cash Available = Beginning Cash Balance + Budgeted Cash Receipts

                                   = $18,000 + $183,000

                                   = $201,000

Excess (Deficiency) of Cash Available over Disbursements:

= Total Cash Available - Budgeted Cash Disbursement

= $201,000 - $188,000

= $13,000

23.

Amount to be borrowed:

= Desired ending Cash Balance - Excess (Deficiency) of Cash Available over Disbursements

= $30,000 - $13,000

= $17,000