17) Goss Company is preparing a cash budget for the month of June. The following

Question

17) Goss Company is preparing a cash budget for the month of June. The following information is available: Cash Balance, May 31, 2010 Cash collections from customers in June Cash paid for merchandise in June Cash paid for operating expenses in June Purchase furniture for cash in June Depreciation expense in June Amortization expense in June $10,000 46,000 42,000 12,000 3,000 1,000 1,000 The minimum cash balance desired is $10,000. What is the cash balance on June 30, 2010? C) $20,000 D) $10,000 A) $11,000 E) none of the above B) $21,000

Explanation / Answer

Dear Student Thank you for using Chegg Please find below the answer Statementshowing Computations Paticulars Amount Beginning Balance               10,000.00 Add Cash collections               46,000.00 Less Cash paid for merchandise            (42,000.00) Less cash paid for operating expense            (12,000.00) Less cash paid for furniture               (3,000.00) Ending cash balance before adj               (1,000.00) Desired minimum cash balance               10,000.00 Borrowing               11,000.00 Ending cash balanc after adj = -1000 + 11000               10,000.00

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