Hilliard Company budgeted the following transactions for April Year 2: The beginning cash balance was $50,000. The company desires to have a $25,000 ending cash balance. The surplus (or shortage) of cash before considering any financing activities (that is, borrowings or repayments) during in April would be:

Question

Hilliard Company budgeted the following transactions for April Year 2:  The beginning cash balance was $50,000. The company desires to have a $25,000 ending cash balance. The surplus (or shortage) of cash before considering any financing activities (that is, borrowings or repayments) during in April would be:

Quizplus · Accepted Answer

Projected ending cash balance (before borrowing or repayments, if any) = Beginning cash balance + Cash receipts - Cash payments
Projected ending cash balance (before borrowing or repayments, if any) = $50,000 + ($200,000 × 75%) - ($105,000 + $75,000) = $50,000 + $150,000 - $180,000 = $20,000 surplus

Hilliard Company Budgeted the Following Transactions for April Year 2