Question
In: Accounting
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
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