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dlinn [17]
4 years ago
11

Einstein Company is preparing its cash budget for the upcoming month. The beginning cash balance for the month is expected to be

$ 15 comma 000. Budgeted cash receipts are $ 82 comma 000​, while budgeted cash disbursements are $ 68 comma 000. Einstein Company wants to have an ending cash balance of $ 15 comma 000. The excess​ (deficiency) of cash available over disbursements for the month would be
Business
1 answer:
dusya [7]4 years ago
6 0

The excess cash balance available over disbursements for the month would be $29000

<u>Explanation:</u>

Calculation of the cash available over the distribution for the month is as follows:

Particulars                                                     Amount

                                                                     (In dollars)

begining cash balance                                 15000

Cash receipts                                                82000

Total cash                                                      97000

Less: cash disbursements                             68000

Excess cash available                                       29000

therefore, the excess cash available is $29000

Even though the company wants a balance of cash at the ending to be $15000, there is excess of cash balance than that. Even after deducting the cash disbursements, a company has a surplus amount of cash in its account to be shown in the books of accounts.

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