Question
Asked Sep 24, 2019

In 2018 Calvia Corporation had cash receipts of $35,000 and cash disbursments of $20,000. Calvia's ending cash balance at December 31,2018 was $65,000. What was Calvia's beginning cash balance?

 

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Step 1

Formula to compute the beginning cash balance.

(Ending cash balance
Beginning Cash Balance= | -Cash receipts
+Cash disbursements
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(Ending cash balance Beginning Cash Balance= | -Cash receipts +Cash disbursements

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Step 2

Compute the beginning cash ba...

Ending cash balance
Beginning Cash Balance = | -Cash receipts
+Cash disbursements
=$65,000-$35,000 +$20,000
=$50,000
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Ending cash balance Beginning Cash Balance = | -Cash receipts +Cash disbursements =$65,000-$35,000 +$20,000 =$50,000

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