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Use the following information for #22 and #23: Bries Corporation is preparing its cash budget for...

Use the following information for #22 and #23: Bries Corporation is preparing its cash budget for January. The budgeted beginning cash balance is $18,000. Budgeted cash receipts total $183,000 and budgeted cash disbursements total $188,000. The desired ending cash balance is $30,000.

22. The excess (deficiency) of cash available over disbursements for January is: A. $23,000 B. $13,000 C. ($5,000) D. $201,000

23. To attain its desired ending cash balance for January, the company should borrow: A. $17,000 B. $0 C. $30,000 D. $43,000

Solutions

Expert Solution

  • All working forms part of the answer
  • Following Working is for Both #22 and #23

A

Beginning Cash Balance

$            18,000.00

B

Budgeted Cash Receipts

$          183,000.00

C = A + B

   Total Cash Available

$          201,000.00

D

Budgeted Cash Disbursement

$          188,000.00

E = C - D

   Excess (Deficiency) of Cash Available over Disbursements

$            13,000.00 [Answer for #22]

F

Desired ending Cash Balance

$            30,000.00

G = F - E

Amount to be borrowed

$            17,000.00 [Answer for #23]

  • Correct answer for #22 = Option ‘B’ $ 13,000
  • Correct answer for #23 = Option ‘A’ $ 17,000

ekkarill92 answered 2 years ago
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