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17 July, 06:25

MC Qu. 110 Southland Company is preparing ... Southland Company is preparing a cash budget for August. The company has $17,100 cash at the beginning of August and anticipates $121,000 in cash receipts and $134,600 in cash disbursements during August. Southland Company wants to maintain a minimum cash balance of $10,000. The preliminary cash balance at the end of August before any loan activity is:

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  1. 17 July, 06:35
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    The preliminary cash balance at the end of August before any loan activity is $3,500

    Explanation:

    For calculating the borrowed amount, first we have to compute the cash available for use and cash payment.

    So,

    Cash available for use is equals to

    = Beginning balance + Cash receipts

    = $17,100 + $121,000

    = $138,100

    And, the cash disbursement is $134,600

    So the preliminary cash balance is equals to

    = Cash available for use - cash disbursement

    = $138,100 - $134,600

    = $3,500

    Hence, The preliminary cash balance at the end of August before any loan activity is $3,500
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Home » Business » MC Qu. 110 Southland Company is preparing ... Southland Company is preparing a cash budget for August. The company has $17,100 cash at the beginning of August and anticipates $121,000 in cash receipts and $134,600 in cash disbursements during August.
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