A company is preparing its cash budget for the coming month. All sales are on account....

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A company is preparing its cash budget for the coming month. All sales are on account....

A company is preparing its cash budget for the coming month. All sales are on account. Given the following:

	Beginning	Budgeted
	Balances	Amounts
Cash	$ 84,000
Accounts Receivable	197,000
Sales		$817,000
Cash disbursements		797,000
Depreciation		42,000
Ending accounts receivable balance		227,000

What is the expected cash balance of the company at the end of the coming month?

	A.	$32,000.
	B.	$134,000.
	C.	$74,000.
	D.	$92,000.

business accounting

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Answer 1

Answer #1

Particulars	Amount
Beginning cash balance	$84,000
Add: Cash received (197000+817000-227000)	787,000
Less: Cash disbursements	797,000

Expected cash balance of the company at the end of the coming month	$74,000

Option c. is correct answer.

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Answer 2

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