Beginning cash is $54,700. The weekly cash budget shows $286,400 of receipts, $214,900 of vendor payments, $58,200 of payroll, and a $9,000 equipment loan payment. What ending cash is forecast?
Correct Answer
D) $59,000
Ending cash equals beginning cash plus receipts minus all disbursements, which gives $59,000.
Why This Is the Correct Answer
Ending cash equals beginning cash plus receipts minus all disbursements, which gives $59,000.
Why the Other Options Are Wrong
Option A: $43,000
$43,000 is below the supported result for cash budget; it likely skips a premium-pay or employer-cost component.
Option B: $48,000
$48,000 is below the supported result for cash budget; it likely skips a premium-pay or employer-cost component.
Option C: $50,500
$50,500 is below the supported result for cash budget; it likely skips a premium-pay or employer-cost component.
Memory Technique
Deciding Whether payroll: time, premium, reimbursement, proof in separate buckets.
Reference Hint
Open-book path: tab Builder's Guide to Accounting, 2001 to Section Two, Cash Budgeting, Preparing a Cash Budget; use the job ledger figures in the stem and recompute the same accounting measure.
More Business & Finance Questions
The Cedar Key subcontract closeout file requires 44 final releases, and 31 have been received. How many releases are missing?
A Florida GC prepaid $18,000 for annual insurance and expenses it evenly by month. After 7 months have expired, what prepaid asset remains?
The West Miami system access list starts with 22 active users, adds 4, and removes 7. How many active users should remain?
The Winter Park bank review shows a bank balance of $124,600, book balance of $119,400, and known timing items of $3,200. What unexplained difference remains?
The Riverview bank review shows a bank balance of $87,500, book balance of $90,400, and known timing items of $1,600. What unexplained difference remains?
A Satellite Beach contractor had 4 separations during the quarter and an average headcount of 32. What turnover rate should HR report?
A Winter Park startup budgets monthly overhead of $61,500 and wants a 4-month operating reserve. What reserve should be funded?
A Royal Palm Beach customer account has unpaid approved invoices of $126,000. Company policy requires review when unpaid invoices exceed $100,000. What status applies?
A Wildwood contractor had 9 separations during the quarter and an average headcount of 60. What turnover rate should HR report?
A Clermont field group had 64 absence hours out of 1280 scheduled hours. What absence rate should be reported?
People Also Study
Related Study Resources
Previous Question
A Stuart insurance file has three covered losses of $4,200, $9,100, $1,100. The deductible is $5,000 per occurrence. What total deductible cost should be tracked administratively?
Next Question
The Holly Hill vendor account has this issue: supplier places account on hold. Which administrative control should be used?