The following information was used by the Long Corporation to prepare a cash budget for April: Cash balance beginning of April$16,000 Expected cash receipts in April 272,000 Sales salaries paid 62,000 Material purchases (all cash) 94,000 Depreciation charges 44,000 Other expenses (all cash) 96,000 What is the budgeted ending cash balance in April? Multiple Choice None of these. $36,000 $45,000 $22,000 $ (8,000)

The objective of the question is to calculate the budgeted ending cash balance for the Long…

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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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The following information was used by the Long Corporation to prepare a cash budget for April:


Cash balance beginning of April	$	16,000
Expected cash receipts in April		272,000
Sales salaries paid		62,000
Material purchases (all cash)		94,000
Depreciation charges		44,000
Other expenses (all cash)		96,000

What is the budgeted ending cash balance in April?

Multiple Choice

None of these.
$36,000
$45,000
$22,000
$ (8,000)

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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