Use the following to prepare the cash budget. What is the ending cash balance? Beginning cash balance $3,000; Cash receipts $50,

Question

Phoenix [80]

3 years ago

8

Use the following to prepare the cash budget. What is the ending cash balance? Beginning cash balance $3,000; Cash receipts $50,

000; Cash payments $40,000.

Business

1 answer:

aleksley [76] · Answer 1 · 2022-02-21T07:16:34+03:00

Answer:

Ending cash balance = $13,000

Explanation:

<em>A cash budget is statement that shows the estimated cash receipts and the estimated cash payments for a forth coming accounting period. In addition, it provides information about the expected cash balance for the period to which it relates.</em>

With help of a cash budget, a business can plan ahead for the usage of its surplus funds and how to finance its deficit cash position

Ending cash balance = Beginning cash balance + cash receipts - cash payment

= 3,000 + 50,000 - 40,000

Ending cash balance = $13,000