Mosbey Inc. is working on its cash budget for June. The budgeted beginning cash

Question

Mosbey Inc. is working on its cash budget for June. The budgeted beginning cash balance is $29,000. Budgeted cash receipts total $187,000 and budgeted cash disbursements total $186,000. The desired ending cash balance is $51,000. The excess (deficiency) of cash available over disbursements for June will be:

Mosbey Inc. is working on its cash budget for June. The budgeted beginning cash balance is $29,000. Budgeted cash receipts total $187,000 and budgeted cash disbursements total $186,000. The desired ending cash balance is $51,000. The excess (deficiency) of cash available over disbursements for June will be:

Explanation / Answer

Hi,

Please find the answer as follows:

Excess (Deficiency) of Cash Available over Disbursement = 29000 (Opening Balance of Cash) + 187000 (Budgeted Cash Receipts) - 186000 (Budgeted Cash Payments) = 30000

Option A (30000) is the correct answer.

Notes:

Desired ending balance will not be considered in the calculation of the answer as mentioned in the question.

Thanks.

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