Kulvekowski Company uses a cash budget.The beginning cash balance is $1,000,000.The budgeted cash balance is $1,000,000.The company has budgeted cash disbursements of $500,000 and budgeted cash receipts of $1,600,000.What amount of cash is available for investing?

Question

Quizplus · Accepted Answer

The cash available for investing is calculated as beginning cash balance + budgeted cash receipts - budgeted cash disbursements. Therefore, $1,000,000 + $1,600,000 - $500,000 = $2,100,000. Since the budgeted cash balance is $1,000,000, the excess cash available for investing is $2,100,000 - $1,000,000 = $1,100,000.

Kulvekowski Company Uses a Cash Budget