Question

Wriston Company is preparing its cash budget for the upcoming month. The beginning cash balance for the month is expected to be $16,000. Budgeted cash disbursements are $79,500, while budgeted cash receipts are $85,600. Wriston Company wants to have an ending cash balance of $15,000. The excess (deficiency) of cash available over disbursements for the month would be _________?

Answer 1

The excess (deficiency) of cash available over disbursements for the month would be $22.100

Step-by-step explanation:

To calculate the excess cash, consider the following formula:

Excess cash = Beginning cash balance + budgeted cash receipts - budgeted cash receipts.

Excess cash = 16.000 + 85.600 - 79.500 = $22.100