The following information is available for sheridan company for the month of january: expected cash receipts $59,020; expected cash disbursements $66,600; and cash balance on january 1, $11,980. management wishes to maintain a minimum cash balance of $8,490. prepare a basic cash budget for the month of january.

Explanation:

The preparation of the cash budget is shown below:

Beginning cash balance                                   $11,980

Add: Expected cash receipts                           $59,020

Total Cash available                                         $71,000

Less: Expected cash disbursements               ($66,600)

Excess amount                                                  $4,400

Amount need to be financed (Bal. figure)        $4,090

Ending cash balance                                        $8,490

you have to put the parentheses like this:

in fact, you have to perform the operation inside parentheses first, and then proceed in order: