A company estimates purchasing $518 of materials and other items on account. They have a beginning balance
Question:
A company estimates purchasing $518 of materials and other items on account. They have a beginning balance of $95 and a desired ending balance of $88 in Accounts Payable. The company estimates using $353 of labor costs. They have a beginning balance of $45 and a desired ending balance of $55 in Wages Payable. The company plans on selling $1,081 of product. They have a beginning balance of $106 and a desired ending balance of $129 in accounts receivable. They are beginning the year with $54 of cash. The company plans on paying off $100 of debt this year.
What is their budgeted ending cash balance, assuming accounts payable, wages payable, accounts receivable, and the debt payment are the only things that affect cash this year?
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill