Question

Remington Corporation is preparing its cash budget for June. The budgeted beginning cash balance is $28,000. Budgeted cash receipts total $140,000. Cash disbursements include raw materials purchases of $35,000, property insurance of $14,500, utilities of $10,000, executive salaries of $79,000, and office supplies of $6,300. The desired ending cash balance is $20,000. The excess (deficiency) of cash available over disbursements for June is: Question 16 options: $23,200 $17,900 $64,000 $21,000

Answer 1

Answer

• Correct Answer = Option #1: $ 23,200
• Working

A	Beginning Cash balance	$28,000
B	Cash receipts	$140,000
C = A+B	Total Cash available	$168,000
D = 35000 + 14500 + 10000 + 79000 + 6300	Cash Disbursements	$144,800
E = C - D	Excess of cash available over disbursement	$23,200 Answer
F	Minimum required balance	$20,000
G = F - E	Amount to be borrowed	$ 0