Question

Use the following information to determine the ending cash balance to be reported on the month ended June 30 cash budget.a. Beginning cash balance on June 1, $73,000.b. Cash receipts from sales, $413,000.c. Budgeted cash disbursements for purchases, $268,000.d. Budgeted cash disbursements for salaries, $35,000.e. Other budgeted cash expenses, $57,000.f. Cash repayment of bank loan, $32,000.g. Budgeted depreciation expense, $34,000.A. $94,000.B. $60,000.C. $126,000.D. $149,000.

Answer 1

Answer: $94,000

Explanation:

It should be noted that depreciation expense will not be included on the cash budget because it is non-cash. Therefore, the ending cash balance to be reported on the month ended June 30 cash budget will be:

Beginning cash balance on June 1 = $73,000

Add: Cash receipts from sales = $413,000

Less: Budgeted cash disbursements for purchases = $268,000

Less: Budgeted cash disbursements for salaries = $35,000

Less: Other budgeted cash expenses = $57,000

Less: Cash repayment of bank loan, $32,000

= $73,000 + $413,000 - $268,000 - $35,000 - $57,000 - $32,000

= $94,000