Consider the following information taken from the cash account. Assume cash payments were 80% of collections.How much was the beginning balance of the cash account? $$\begin{array} { | c | l | }
\hline \text { Cash } & \
\hline ? ? & \text { Beginning balance } \
\hline \$ 115,375 & \text { Collections } \
\hline ? ? & \text { Disbursements } \
\hline \$ 80,275 & \text { Ending balance } \
\hline
\end{array}$$
A) $57,200
B) $92,300
C) $103,350
D) $35,100

Question

Consider the following information taken from the cash account. Assume cash payments were 80% of collections.How much was the beginning balance of the cash account? $$\begin{array} { | c | l | } 
\hline \text { Cash } & \
\hline ? ? & \text { Beginning balance } \
\hline \$ 115,375 & \text { Collections } \
\hline ? ? & \text { Disbursements } \
\hline \$ 80,275 & \text { Ending balance } \
\hline
\end{array}$$
A) $57,200
B) $92,300
C) $103,350
D) $35,100

Quizplus · Accepted Answer

Disbursements are 80% of collections, so disbursements = 0.8 * $115,375 = $92,300. The beginning balance can be calculated as: Beginning balance = Ending balance + Disbursements - Collections = $80,275 + $92,300 - $115,375 = $57,200.

Consider the Following Information Taken from the Cash Account A) $57,200 B) $92,300 C) $103,350 D) $35,100

Consider the Following Information Taken from the Cash Account A) $57,200
B) $92,300
C) $103,350
D) $35,100