A company has a beginning cash balance of $2,000. For the year, it, estimates cash receipts of $105,900. It has a desired ending cash balance of $3,500 and anticipates no new financing. The estimated cash disbursements are:

Question

Quizplus · Accepted Answer

The estimated ending cash balance can be calculated as:

Beginning cash balance + Cash receipts – Cash disbursements = Desired ending cash balance

$2,000 + $105,900 - Cash disbursements = $3,500

Rearranging the above equation, we get:

Cash disbursements = $104,400

Therefore, the best choice is B) $104,400.

A Company Has a Beginning Cash Balance of $2,000