Question

Wriston Company is preparing its cash budget for the upcoming month. The beginning cash balance for the month is expected to be

$17,000.

Budgeted cash disbursements are

$75,500,

while budgeted cash receipts are

$85,700.

Wriston Company wants to have an ending cash balance of

$20,000.

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

A.

$178,200

B.

$27,200

C.

$95,500

D.

$(27,200)

Answer 1

Beginning cash balance	$   17,000
Add: Budgeted cash receipts	$   85,700
Less: Budgeted cash disbursements	$ (75,500)
excess (deficiency) of cash available over disbursements	$   27,200

Answer is B. $27,200

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