Answered: For the purposes of the cash budget,…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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If it can be done in excel, please, I would appreciate it very much (and show the formulas).

For the purposes of the cash budget, projected balance method, it is necessary to calculate the depreciation for the year and for this purpose we have the following data: The balance of the Delivery Equipment account is $250,000.00; the Accumulated Depreciation of Delivery Equipment is $100,000.00; the depreciation method is straight-line; the company has been operating for two years. What is the amount of depreciation to be charged to income in the current fiscal year?

Definition Definition Estimate of an organization's cash flow for a future period. A cash budget forecasts future cash receipts and payments from various sources for a fiscal year. A cash budget can be created once a month or once a week to determine the organization's cash position and ensure its performance in relation to the budget. It aids in determining whether the company has enough cash and cash equivalents to meet its operational needs in the future.

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