During the month of February, Hoffer Company had cash receipts of $7,500 and cash disbursements of $8,600. The February 28 cash balance was $1,800. What was the January 31 beginning cash balance?
A) $700.
B) $1,100.
C) $2,900.
D) $0.
E) $4,300.

Question

Quizplus · Accepted Answer

To find the beginning cash balance, we can use the formula: Beginning Cash Balance + Cash Receipts - Cash Disbursements = Ending Cash Balance. Plugging in the numbers: Beginning Cash Balance + $7,500 - $8,600 = $1,800. Solving for the Beginning Cash Balance gives us $2,900.

During the Month of February, Hoffer Company Had Cash Receipts