Cash Budget Beginning cash balance Plus Cash collections Cas

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

Solution

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