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,and a beginning cash balance of $500.The ending cash balance for August totals ________.

Question

Quizplus · Accepted Answer

Beginning cash balance = $500

Total cash receipts = $10,000

Total cash disbursements = $8,000

Depreciation expense = $1,000

Net cash inflow = Total cash receipts - Total cash disbursements = $10,000 - $8,000 = $2,000

Ending cash balance = Beginning cash balance + Net cash inflow - Depreciation expense
= $500 + $2,000 - $1,000
= $2,500

Therefore, the ending cash balance for August is $2,500 (Option C).

In the Month of August,a Firm Had Total Cash Receipts