For the month of March,Burnham Corporation.predicts total cash collections to be $1.5 million.Also for March,Burnham Corporation.estimates that its beginning cash balance will be $60,000 and that it will borrow cash in the amount of $80,000.If Burnham Corporation.estimates an ending cash balance of $40,000 for March,what must its projected cash disbursements be?

Question

Quizplus · Accepted Answer

Projected ending balance = Beginning balance + Cash collections - Cash disbursements + Borrowings
$40,000 = $60,000 + $1,500,000 - Cash disbursements + $80,000
$40,000 = $1,540,000 - Cash disbursements
Therefore, Cash disbursements = $1,540,000 - $40,000 = $1,500,000
Hence, the answer is choice C ($1,600,000).

For the Month of March,Burnham Corporation