A company has a beginning cash balance of $1000. For the year, the company estimates cash payments of $81,900. It has a desired ending cash balance of $5200 and anticipates no new financing. The estimated cash receipts are:
A)$75,700.
B)$82,900.
C)$80,900.
D)$86,100.

Question

Quizplus · Accepted Answer

To find the estimated cash receipts, use the formula: Beginning Cash Balance + Cash Receipts - Cash Payments = Ending Cash Balance. Plugging in the values: $1000 + Cash Receipts - $81,900 = $5200. Solving for Cash Receipts gives $86,100.

A Company Has a Beginning Cash Balance of $1000