Sundy Company provided the following information for the month of August: Sundy borrowed $15,000 and repaid $16,000 during the month.How much will Sundy's report on its budgeted balance sheet at August 31 for cash?

Question

Sundy Company provided the following information for the month of August:  Sundy borrowed $15,000 and repaid $16,000 during the month.How much will Sundy's report on its budgeted balance sheet at August 31 for cash?

Quizplus · Accepted Answer

Since Sundy borrowed $15,000 and repaid $16,000 during the month, their net decrease in cash for the month is $1,000 ($15,000 borrowed - $16,000 repaid). Therefore, their budgeted cash balance at August 31 would be $26,000 ($27,000 beginning balance - $1,000 net decrease during the month). So, the correct choice is (C).

Sundy Company Provided the Following Information for the Month of August