Asked by James Acsayan on May 09, 2024
Verified
Romeiro Corporation is preparing its cash budget for September.The budgeted beginning cash balance is $46,000.Budgeted cash receipts total $160,000 and budgeted cash disbursements total $152,000.The desired ending cash balance is $70,000.The company can borrow up to $120,000 at any time from a local bank, with interest not due until the following month.
Required:
Prepare the company's cash budget for September in good form.
Cash Budget
A forecast of cash inflows and outflows over a specific period, used for cash management.
Cash Receipts
The collection of money, typically in the form of cash or checks, by a business from its customers for goods or services provided.
Cash Disbursements
Outflows of cash for expenses, purchase of assets, or repayment of debt by a business within a given period.
- Assess the elements and planning involved in a direct labor budget.
Verified Answer
AN
Ainna NajwaMay 13, 2024
Final Answer :
Beginning cash balance $46,000
Add cash receipts 160,000
Total cash available 206,000
Less cash disbursements 152,000
Excess (deficiency)of cash available over disbursements 54,000
Borrowings 16,000
Ending cash balance $70,000
Add cash receipts 160,000
Total cash available 206,000
Less cash disbursements 152,000
Excess (deficiency)of cash available over disbursements 54,000
Borrowings 16,000
Ending cash balance $70,000
Learning Objectives
- Assess the elements and planning involved in a direct labor budget.
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