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Accounting Question

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(A) Cash budget Harrington Company Cash budget for the month ended July 31, 2011 Beginning cash balance $45,000 Add: Cash collections $89,000 Total cash available $134,000 Less: Cash disbursements: Merchandise purchases $56,200 Operating expenses $36,800 Equipment purchase $20,500 Total cash disbursements $113,500 Cash remaining $20,500 Add: Borrowings $4,500 Ending cash balance $25,000 Cash disbursements of $113,500 plus the desired ending cash balance of $25,000 exceeds the $134,000 total cash available by $4,500….

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