jensen company is preparing a cash budget for the month of June. The following i

Question

jensen company is preparing a cash budget for the month of June. The following information is avalaible.

Cash balance, May 31, 2015                                           $ 10,000

Cash collection from customers in June                           $ 76,000

Cash paid for merchandise in June                                    42000

Paind operating expenses in June                                      17000

Purchase furniture for cash in June                                      5000

Depreciation expense in June                                               2000

Amortization expense in June                                               3000

The minum cash balance desired in $ 10000. What are the net cash receipts and disbursements for the month of June

A) 7000

B) 17000

C) 12000

D ) 10000

Explanation / Answer

C) 12000 Statement showing computations Particulars Amount Cash Receipts: Cash collection from customers in June                   76,000.00 Total Cash Receipts                76,000.00 Cash Disbursements: Cash paid for merchandise in June                42,000.00 Paid operating expenses in June                     17,000.00 Purchase furniture for cash in June                  5,000.00 Total Cash disbursements                64,000.00 Net cash receipts and disbursements for the month of June                12,000.00

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