Southland Company is preparing a cash budget for August. The company has $17,000 cash at the beginning of August and anticipates $120,800 in cash receipts and $134,500 in cash disbursements during August. Southland Company wants to maintain a minimum cash balance of $10,000.
-The preliminary cash balance at the end of August before any loan activity is:

Question

Southland Company is preparing a cash budget for August. The company has $17,000 cash at the beginning of August and anticipates $120,800 in cash receipts and $134,500 in cash disbursements during August. Southland Company wants to maintain a minimum cash balance of $10,000. 
-The preliminary cash balance at the end of August before any loan activity is:

Quizplus · Accepted Answer

The preliminary cash balance is calculated as beginning cash plus cash receipts minus cash disbursements: $17,000 + $120,800 - $134,500 = $3,300.

Southland Company Is Preparing a Cash Budget for August