In the month of May, a firm had total cash receipts of $20,000, total cash disbursements of $ 16,000, depreciation expense of $2.000, a minimum cash balance of $6.000, and a beginning cash balance of $ 1.000. At the end of May, what will be ending cash of the firm?

In the month of May, a firm had total cash receipts of $20,000, total cash disbursements of $ 16,000, depreciation expense of $2.000, a minimum cash balance of $6.000, and a beginning cash balance of $ 1.000. At the end of May, what will be ending cash of the firm?

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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Concept explainers

Cash Book

So, before coming to the topic of cash books, I will let you briefly explain about the cash so that you all can be familiar with the word cash. Cash comes under the category of the current asset which is used as a medium of exchange for all the financial transactions in the firm. Cash is something that is universally accepted as a mode of payment. So, now comes to the topic i.e., cash book.

Question

In the month of May, a firm had total cash receipts of $20,000, total cash disbursements of $
16,000, depreciation expense of $2.000, a minimum cash balance of $6.000, and a beginning cash
balance of $ 1.000. At the end of May, what will be ending cash of the firm?

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Accounting for Cash and cash equivalents

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