Question

#17

Sedita Inc. is working on its cash budget for July. The budgeted beginning cash balance is $13,000. Budgeted cash receipts total $182,000 and budgeted cash disbursements total $181,000. The desired ending cash balance is $35,000. The excess (deficiency) of cash available over disbursements for July will be: A$12,000 B) $195,000 C) $14.000 D) $1000 93 17 12, doo 17) Sparks Corporation has a cash balance of $15,300 on April 1. The company must maintain a minimum cash balance of $12,500. During April, expected cash receipts are $61,000. Cash disbursements during the month are expected to total $71,500. Ignoring interest payments, during April the company will need to borrow: A) $12,500 B) $10,500 C) $4800 D) $7700 2730 45.700

Answer 1

17) Cash budget

Beginning Cash balance	15300
Expected cash receipt	61000
Total Cash available	76300
Less: Cash disbursement	-71500
Preliminary Cash balance	4800
Borrow (12500-4800)	7700
Ending Cash balance	12500

So answer is d) $7700