A recent cash budget showed estimated cash receipts of $164,000, estimated cash payments of $160,000, and a desired ending cash balance of $15,000, with no new financing. The beginning cash balance was:

Question

Quizplus · Accepted Answer

The beginning cash balance is the desired ending cash balance plus the net cash flow. The net cash flow is the estimated cash receipts minus the estimated cash payments. Therefore, the beginning cash balance is $15,000 + ($164,000 - $160,000) = $19,000.

A Recent Cash Budget Showed Estimated Cash Receipts of $164,000