A. In this answer the amount of depreciation is deducted. However, depreciation is a non-cash expense and is not included in the calculation of expected cash balance. See the correct answer for a complete explanation.
B. This answer is incorrect. See the correct answer for a complete explanation.
C. This answer is incorrect. See the correct answer for a complete explanation.
D. The cash balance at the end of the period is equal to the: Beginning Cash balance + Sales - Ending AR + Beginning AR - Cash Disbursements or $50,000 + $800,000 - $210,000 + $180,000 - $780,000 = $40,000.
Depreciation is non-cash expense and is not included in calculation.
