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Sagot :
The preliminary cash balance of the IP company is $10,000.
To calculate the preliminary cash balance, use the following equation:
The preliminary cash balance is equal to the beginning cash balance plus cash receipts minus cash outlays.
$5,000 + $20,000 - $15,000 = preliminary cash balance
$10,000 is the preliminary cash balance.
A cash balance is the amount of money that a company has on hand right now. This money is kept on hand in case of unexpected cash outflows. Businesses may find themselves unable to pay their bills if this safety net is not in place.
The cash balance is typically used to pay down debt or returned to investors in the form of a dividend. Businesses that have a significant difference in the timing and amount of cash inflows and outflows require a cash balance in particular.
To learn more about cash balance, please refer:
https://brainly.com/question/27062172
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