In the flooring upgrade file, a CA contractor expects $88,000 of cash receipts in August and $73,400 of cash disbursements. If beginning cash is $19,500, what ending cash is projected?
Correct Answer
A) $34,100.
Ending cash equals beginning cash plus receipts minus disbursements: $19,500 + $88,000 - $73,400 = $34,100.
Why This Is the Correct Answer
Ending cash equals beginning cash plus receipts minus disbursements: $19,500 + $88,000 - $73,400 = $34,100.
Why the Other Options Are Wrong
Option B: $14,600.
$14,600. is below the supported result for cash-flow forecast; it likely uses the wrong base, period, or account bucket.
Option C: $53,600.
$53,600. is above the supported result for cash-flow forecast; it likely adds an unsupported amount or compares the wrong financial base.
Option D: $180,900.
$180,900. is above the supported result for cash-flow forecast; it likely adds an unsupported amount or compares the wrong financial base.
Memory Technique
Preparing Monthly money test: bucket before math for cash-flow forecast.
Reference Hint
Study anchor (closed-book): memorize Cash-flow forecast from CSLB Law and Business Study Guide; CSLB 2026 Law Book / CSLB Law and Business Study Guide Business Finances; know the rule or calculation trigger without relying on exam-room lookup.
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