Given ending cash balance of $12,500, cash receipts of $35,000, and cash payments of $28,000, what is the beginning cash balance?

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Multiple Choice

Given ending cash balance of $12,500, cash receipts of $35,000, and cash payments of $28,000, what is the beginning cash balance?

Explanation:
In cash balance accounting, the ending cash equals the beginning cash plus cash receipts minus cash payments. So to find the beginning cash, rearrange the relationship: Beginning = Ending − Receipts + Payments. Plugging in the numbers: Beginning = 12,500 − 35,000 + 28,000 = 5,500. Therefore, the beginning cash balance is 5,500.

In cash balance accounting, the ending cash equals the beginning cash plus cash receipts minus cash payments. So to find the beginning cash, rearrange the relationship: Beginning = Ending − Receipts + Payments. Plugging in the numbers: Beginning = 12,500 − 35,000 + 28,000 = 5,500. Therefore, the beginning cash balance is 5,500.

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