This Question: 1 pt 4 of 18 (0 complete) Comish Company is preparing a cash budg

Question

This Question: 1 pt 4 of 18 (0 complete) Comish Company is preparing a cash budget for the month of June. The following information is available: Cash Balance, May 31, 2015 Cash collections from customers in June Depreciation expense in June Cash paid for equipment in June Cash paid for merchandise in June $11,000 43,000 10,000 20,000 20,000 20,000 Cash paid for operating expenses in June Cash dividend paid in June 5,000 The minimum cash balance desired is $5,000. What are the net cash receipts and disbursements for the month of June? OA $(32,000) OB $(2,000) O C. $(3,000) O D. $(22,000) Click to select your answer 11:59pm 1-21 of 21 5 0

Explanation / Answer

Cornish Company

Answer – D. ($22,000)

Computation of the net cash receipts and disbursements for the month of June:

Receipts:

Cash collections from customers

$43,000

Cash Disbursements:

Cash paid for equipment

($20,000)

Cash paid for merchandise

($20,000)

Cash paid for operating expenses

($20,000)

Cash dividend paid

($5,000)

Total disbursements

($65,000)

Excess/(deficiency of cash receipts over disbursements

($22,000)

Receipts:

Cash collections from customers

$43,000

Cash Disbursements:

Cash paid for equipment

($20,000)

Cash paid for merchandise

($20,000)

Cash paid for operating expenses

($20,000)

Cash dividend paid

($5,000)

Total disbursements

($65,000)

Excess/(deficiency of cash receipts over disbursements

($22,000)

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.