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 payments for purchases, $268,000.
• Budgeted cash payments for salaries, $35,000.
• Other budgeted cash expenses, $57,000.
• Cash repayment of bank loan, $32,000.
• Budgeted depreciation expense, $34,000.

A) $94,000.
B) $60,000.
C) $126,000.
D) $149,000.
E) $21,000.

Question

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 payments for purchases, $268,000. 
•	Budgeted cash payments for salaries, $35,000. 
•	Other budgeted cash expenses, $57,000. 
•	Cash repayment of bank loan, $32,000. 
•	Budgeted depreciation expense, $34,000.

A) $94,000.
B) $60,000.
C) $126,000.
D) $149,000.
E) $21,000.

Quizplus · Accepted Answer

$73,000 + $413,000 − $268,000 − $35,000 − $57,000 − $32,000 = $94,000
Depreciation expense is non-cash and as such is not included in the cash budget.

Use the Following Information to Determine the Ending Cash Balance