Homework SourseX Company has the following budgeted cash flows for January
X Company has the following budgeted cash flows for January
If the cash balance is $5,000 on January 1, what is the budgeted cash balance on January 31?
| Cash collections | $45,000 | |
| Cash Payments | ||
| Inventory | 17,000 | |
| Operating Expenses | 13,000 | |
| Capital Expenditures | 18,000 |
Solution
SOLUTION
Budgeted cash balance on January 31 is $2,000
| Particulars | Amount ($) |
| Cash balance as on Jan. 1 | 5,000 |
| Add: Cash collections | 45,000 |
| Total cash available | 50,000 |
| Less: Cash payments- | |
| Inventory | (17,000) |
| Operating Expenses | (13,000) |
| Capital Expenditures | (18,000) |
| Cash balance on January 31 | 2,000 |
