If the opening balance of cash for one month is $20,000, cash receipts are estimated to be $389,000 and cash payments are estimated as $300,000 the opening cash balance at the beginning of the next month is:

Question

Quizplus · Accepted Answer

To calculate the closing balance of cash at the end of the month, we use the formula:

Closing balance = Opening balance + Cash receipts - Cash payments

Plugging in the given values, we get:

Closing balance = $20,000 + $389,000 - $300,000
Closing balance = $109,000

Therefore, the opening cash balance at the beginning of the next month is $109,000. Option B is the correct answer.

If the Opening Balance of Cash for One Month Is