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Is there an equation to finding the beginning cash balance?
Imhiding
Sep 24, 2011, 05:10 PM
I have the cash receipts, the cash payments and the ending cash balance, but I can't figure out the beginging cash balance.
pready
Sep 26, 2011, 06:44 AM
You need to work the problem backwards to get the beginning balance.
Your basic formula is:
Beginning Cash balance + Cash Receipts - Cash payments = Ending Cash balance.
So:
Beginning Cash Balance = Ending Cash Balance - Cash Receipts + Cash Payments.