A Company Is Preparing Its Cash Budget for the Coming

A company is preparing its cash budget for the coming month. All sales are on account. Given the following:
$\begin{array}{lr}&\text { Beginning}\\&\text { Balances}&\text { Budget Amount}\\\text { Cash } & 50,000 \\\text { Accounts Receivable } & 180,000 \\\text { Sales } &&\$800,000 \\\text { Cash disbursements } &&780,000 \\\text { Depreciation } &&25,000 \\\text { Ending accounts receivable balance } &&210,000\end{array}$
What is the expected cash balance of the company at the end of the coming month? (CIA adapted)

A) $15,000.
B) $40,000.
C) $45,000.
D) $70,000.

Correct Answer:

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