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9 January, 15:21

Mosbey Inc. is working on its cash budget for June. The budgeted beginning cash balance is $16,000. Budgeted cash receipts total $177,000 and budgeted cash disbursements total $176,000. The desired ending cash balance is $45,000. The excess (deficiency) of cash available over disbursements for June will be:

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  1. 9 January, 19:06
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    There is $28,000 deficiency in desired cash.

    Explanation:

    Cash Balance is the sum of Beginning cash poistion and net of all cash inflows and outflows during the period.

    Beginning Cashflow = $16,000

    Net Cash flow during the year = Cash Receipts - Cash disbursements = $177,000 - $176,000 = $1,000

    Cash Balance = $16,000 + $1,000 = $17,000

    Desired Balance = $45,000

    Over disbursements of cash = $45,000 - $17,000 = $28,000
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