If the opening cash balance at the beginning of the month is $27 500, total cash inflows for the month are $38 000 and total cash outflows are $98 000 the opening cash balance at the beginning of the next month is:

Question

Quizplus · Accepted Answer

Opening cash balance + Total cash inflows - Total cash outflows = Closing cash balance
$27 500 + $38 000 - $98 000 = -$32 500 (deficit)
Therefore, the opening cash balance at the beginning of the next month will be a deficit of $32 500.

If the Opening Cash Balance at the Beginning of the Month