Rogers Corporation is preparing its cash budget for July. The budgeted beginning cash balance is $25,000. Budgeted cash receipts total $141,000 and budgeted cash disbursements total $139,000. The desired ending cash balance is $30,000.
-The excess (deficiency) of cash available over disbursements for April will be:

Question

Quizplus · Accepted Answer

The excess (deficiency) of cash available over disbursements is calculated as the beginning cash balance plus cash receipts minus cash disbursements. So, $25,000 + $141,000 - $139,000 = $27,000. However, the desired ending cash balance is $30,000, so the excess (deficiency) is $27,000 - $30,000 = -$3,000. But since the question asks for the excess over disbursements, the correct calculation is $27,000, which matches choice A.

Rogers Corporation Is Preparing Its Cash Budget for July