In the handyman services business, given the following data, what is the projected ending cash balance for the month?

In the handyman services business, given the following data, what is the projected ending cash balance for the month?

• A. ($80)
• B. $80
• C. $4,000
• D. $500

Answer: (B)

Ending cash balance is found by taking the starting cash, adding cash receipts, and subtracting cash disbursements. When you apply the numbers from the data, the month’s inflows minus outflows leaves a small positive balance of 80, meaning after all expenses are paid, there is still 80 in the bank. The other amounts would require larger inflows, smaller outflows, or starting cash that isn’t supported by the data, so they don’t fit. For a quick sense of the calculation, imagine starting with 500, receiving 900, and paying 1320: 500 + 900 − 1320 = 80.

Ending cash balance is found by taking the starting cash, adding cash receipts, and subtracting cash disbursements. When you apply the numbers from the data, the month’s inflows minus outflows leaves a small positive balance of 80, meaning after all expenses are paid, there is still 80 in the bank. The other amounts would require larger inflows, smaller outflows, or starting cash that isn’t supported by the data, so they don’t fit. For a quick sense of the calculation, imagine starting with 500, receiving 900, and paying 1320: 500 + 900 − 1320 = 80.