For the month of March,Robertson Corporation.predicts total cash collections to be $1.5 million.Also for March,Robertson Corporation.estimates that its beginning cash balance will be $60,000 and that it will borrow cash in the amount of $80,000.If Robertson Corporation.estimates an ending cash balance of $40,000 for March,what must its projected cash disbursements be?

Question

Quizplus · Accepted Answer

To find the projected cash disbursements, we need to use the formula:

Projected cash disbursements = Beginning cash balance + Cash collections - Ending cash balance - Borrowings

Substituting the given values, we get:

Projected cash disbursements = $60,000 + $1.5 million - $40,000 - $80,000 
Projected cash disbursements = $1.54 million

Therefore, the closest option is C) $1,600,000.

For the Month of March,Robertson Corporation