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, $95,700.

b. Cash receipts from sales, $421,500.

c. Budgeted cash disbursements for purchases, $276,500.

d. Budgeted cash disbursements for salaries, $96,700.

e. Other budgeted cash expenses, $58,700.

f. Cash repayment of bank loan, $33,700.

g. Budgeted depreciation expense, $35,700.


i. $85,300.

ii. $15,900.

iii. $74,600.

iv. $51,600.

v. $110,300.

Answer 1

Answer:

The closing budgeted cash balance is $51,600,option iv

Explanation:

Ending cash balance is computed below:

Opening cash balance                                        $95,700

Cash receipt from sales                                        $421,500

Budgeted cash disbursements for purchases  ($276,500)

Budgeted cash disbursements for salaries        ($96,700)

Other budgeted cash expenses                           ($58,700)

Cash payment of bank loan                                  ($33,700)

Month end cash balance                                        $51,600

The budgeted  depreciation expense of $35,700 has no cash implication as it is a mere allocation of asset cost over relevant years .

Ultimately the closing budgeted cash balance is $51,600