Arakaki Inc. is working on its cash budget for January. The budgeted beginning cash balance is $41,000. Budgeted cash receipts total $114,000 and budgeted cash disbursements total $113,000. The desired ending cash balance is $60,000. The excess (deficiency) of cash available over disbursements for January will be:

Question

Quizplus · Accepted Answer

The excess (deficiency) of cash available over disbursements is calculated as beginning cash balance plus cash receipts minus cash disbursements: $41,000 + $114,000 - $113,000 = $42,000.