Title: Cash Flow Analysis for January**Scenario:**Valley Farm Supply began the period with a starting cash balance of $155,000. The cash receipts projected for January amounted to a total of $530,000. Meanwhile, cash disbursements for the same period were anticipated to be $440,000.**Question:**What is the expected cash balance at the end of January?**Options:**1. $155,0002. $245,0003. $530,0004. $440,000**Explanation:**To determine the expected cash balance, calculate as follows:1. Start with the initial cash balance: $155,000.2. Add the cash receipts: $530,000.3. Subtract the cash disbursements: $440,000.The formula is:\[ \text{Ending Cash Balance} = \text{Initial Cash} + \text{Receipts} - \text{Disbursements} \]By substituting the given values:\[ \text{Ending Cash Balance} = 155,000 + 530,000 - 440,000 = 245,000 \]Thus, the expected cash balance at the end of January is **$245,000.**

The cash budget helps to estimate the ending cash balance for the given period. The cash receipts…

Answered: Valley Farm Supply started the period…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Problem 1Q

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Valley Farm Supply started the period with $155,000 cash. Cash receipts for January were expe- disbursements for January were expected to be $440,000. What is the expected cash balance a Multiple Choice O O O $440,000 $530,000 $245,000 $155,000