Cash Budget Beginning cash balance Plus: Cash collections Cash available Less: C

Question

Cash Budget Beginning cash balance Plus: Cash collections Cash available Less: Cash payments Purchases of direct materials Operating expenses Capital expenditures Ending cash balance Aug $34,000 $8,000 $11,000 $51,000 $51,000 45,000 85,000 $59,000 $56,000 36,000 9,000 1,000 40,000 30,000 30,800 7,400 $8,000 $11,000 $6,800 1,000 9,000 Subsequently, the marketing department revised its figures for cash collections. New data are as follows: $53,000 in July $56,000 in August, and $43,000 in September. Based on the new data, calculate the new projected cash balance at the end of September. OA. $6,800 ? B. $18,000 O C. $11,800 OD, $10,000

Explanation / Answer

Calculate new project cash balance :

So answer is c) $11800

Jul Aug Sep Beginning cash balance 34000 10000 18000 Cash collection 53000 56000 43000 Cash available 87000 66000 61000 Less; Cash payment Purchase of direct material 36000 9000 11000 Operating expense 40000 30000 30800 Capital expense 1000 9000 7400 Ending cash balance 10000 18000 11800

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