In the month of August, a firm had total cash receipts of $10,000, total cash disbursements of $8,000, depreciation expense of $1,000, a minimum cash balance of $3,000, and a beginning cash balance of $500. The ending cash balance for August totals ________.

Question

Quizplus · Accepted Answer

To calculate the ending cash balance for August, we need to subtract the total cash disbursements and depreciation expense from the total cash receipts and add the beginning cash balance.

Ending Cash Balance = Beginning Cash Balance + Total Cash Receipts - Total Cash Disbursements - Depreciation Expense

Ending Cash Balance = $500 + $10,000 - $8,000 - $1,000 
Ending Cash Balance = $1,500

Therefore, the ending cash balance for August is $1,500.

In the Month of August, a Firm Had Total Cash