A recent cash budget showed estimated cash receipts of $159,000,estimated cash disbursements of $155,000,and a desired ending cash balance of $6,000,with no borrowing of funds.The beginning cash balance was:

Question

Quizplus · Accepted Answer

To find the beginning cash balance, we need to use the formula:

Beginning cash balance + Estimated cash receipts - Estimated cash disbursements = Desired ending cash balance

Substituting the given values, we get:

Beginning cash balance + $159,000 - $155,000 = $6,000

Simplifying this equation, we get:

Beginning cash balance = $6,000 - $159,000 + $155,000
Beginning cash balance = $2,000

Therefore, the correct answer is A) $2,000.

A Recent Cash Budget Showed Estimated Cash Receipts of $159,000,estimated