Use the following information to determine the ending cash balance to be reported on the month ended June 30 cash budget. Beginning cash balance on June $1 , \$ 73,000$.
Cash receipts from sales, $\$ 413,000$.
Budgeted cash disbursements for purchases, $\$ 268,000$.
Budgeted cash disbursements for salaries, $\$ 35,000$.
Other budgeted cash expenses, $\$ 57,000$.
Cash repayment of bank loan, $\$ 32,000$.
Budgeted depreciation expense, $\$ 34,000$.
A) $126,000.
B) $21,000.
C) $60,000.
D) $149,000.
E) $94,000.

Question

Quizplus · Accepted Answer

To determine the ending cash balance on June 30, we need to start with the beginning cash balance on June 1 and add the cash receipts from sales. This gives us:

Beginning cash balance: $73,000
Cash receipts from sales: $413,000
Total cash available: $486,000

Next, we subtract the budgeted cash disbursements for purchases, salaries, and other expenses, as well as the cash repayment of the bank loan and the budgeted depreciation expense. This gives us:

Budgeted cash disbursements for purchases: $268,000
Budgeted cash disbursements for salaries: $35,000
Other budgeted cash expenses: $57,000
Cash repayment of bank loan: $32,000
Budgeted depreciation expense: $34,000
Total cash disbursements: $426,000

Finally, we subtract the total cash disbursements from the total cash available to get the ending cash balance:

Total cash available: $486,000
Total cash disbursements: $426,000
Ending cash balance: $60,000

Therefore, the ending cash balance to be reported on the month ended June 30 cash budget is $94,000.

Use the Following Information to Determine the Ending Cash Balance 1,$73,0001 , \$ 73,0001,$73,000

Use the Following Information to Determine the Ending Cash Balance $1 , \$ 73,000$