What is the amount of cash receipts during July?
The cash receipts during July amounted to $123,520.
Calculation of Cash Receipts During July
To determine the cash receipts during July, we need to calculate the difference between the July 1 balance and the July 31 balance, and then subtract the cash payments made during the month.
Given information:
July 1 cash balance = $42,830
July 31 cash balance = $33,850
Cash payments during July = $132,500
Step 1: Calculate the Change in Cash Balance During July
Change in cash balance = July 31 cash balance - July 1 cash balance
Change in cash balance = $33,850 - $42,830 = -$8,980
Step 2: Calculate the Cash Receipts
Cash receipts = Change in cash balance + Cash payments
Cash receipts = -$8,980 + $132,500 = $123,520
Therefore, the amount of cash receipts during July was $123,520. This calculation helps in understanding the financial inflow and outflow of cash throughout the month. It is important for businesses to track their cash receipts to ensure proper cash flow management and financial stability.