A firm has $100,000 (A1) cash balance at the beginning of 2017. In 2017, the exp
ID: 2801515 • Letter: A
Question
A firm has $100,000 (A1) cash balance at the beginning of 2017. In 2017, the expected total collections is $600,000(A2), total disbursements are $750,000 (A3). If we assume the required minimum cash balance is $150,000(A4). What's the unadjusted ending balance at the end of 2017? _____
what's the anticipated amount of short-term borrowings in 2017? _____
-$50,000
$50,000
$100,000
$200,000
which of the following IF statements correctly describe the required amount of short-term borrowing in 2017 in order to bring the ending cash balance to the required minimum cash balance level? _____
IF((A1+A2-A3) < A4, 0, A4 - (A1+A2-A3))
IF((A1+A2-A3) > A4, 0, A4 - (A1+A2-A3))
IF((A1+A2-A3) > A4, A4 + (A1+A2-A3), 0)
IF((A1+A2-A3) < A4, A4, A1+A2-A3)
-$50,000
$50,000
$100,000
$200,000
which of the following IF statements correctly describe the required amount of short-term borrowing in 2017 in order to bring the ending cash balance to the required minimum cash balance level? _____
IF((A1+A2-A3) < A4, 0, A4 - (A1+A2-A3))
IF((A1+A2-A3) > A4, 0, A4 - (A1+A2-A3))
IF((A1+A2-A3) > A4, A4 + (A1+A2-A3), 0)
IF((A1+A2-A3) < A4, A4, A1+A2-A3)
Explanation / Answer
Correct answer is A
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Cash balance at the end of year 2017 is
Remaining cash balance = opening cash balance + Cash receipts – Cash disbursement
= 100000 + 600000 – 750000
= (50000)
So total cash balance at the end of the year is (50000)
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Hope that helps.
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