The following information is available for Sheridan Company for the month of January: expected cash receipts $59,020; expected cash disbursements $66,600; and cash balance on January 1, $11,980. Management wishes to maintain a minimum cash balance of $8,490. Prepare a basic cash budget for the month of January.

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Business

Mack

15 September, 23:55

The following information is available for Sheridan Company for the month of January: expected cash receipts $59,020; expected cash disbursements $66,600; and cash balance on January 1, $11,980. Management wishes to maintain a minimum cash balance of $8,490. Prepare a basic cash budget for the month of January.

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Jeffrey Hoffman · Answer 1

The preparation of the cash budget is shown below:

Beginning cash balance $11,980

Add: Expected cash receipts $59,020

Total Cash available $71,000

Less: Expected cash disbursements ($66,600)

Excess amount $4,400

Amount need to be financed (Bal. figure) $4,090

Ending cash balance $8,490