Question

The following information is available for Conger Company for the month of January: expected cash receipts $59,000; expected cash disbursements $67,000; and cash balance on January 1, $12,000. Management wishes to maintain a minimum cash balance of $9,000.
Prepare a basic cash budget for the month of January.

Answer 1

Answer:

Basic cash budget for the month of January

Cash Receipts :

Receipts                               $59,000

Expenditures :

Disbursements                     $67,000

Net Cash                               ($8,000)

Beginning Balance               $12,000

Ending Balance                      $4,000

Loan amount                          $5,000

Explanation:

A Cash Budget gives an estimate of cash receipts and expenditures. It can also tell when and how much additional cash may be required to meet  minimum cash balances.