Trail Industries is preparing its cash budget for the third quarter of the current year.Sales for the third quarter are budgeted at $870,000 $290,000 per month.Sales are 80% cash,with the remaining 20% on credit which is collected in the month following the month of sale.On June 30,the cash balance is $48,000,and the Accounts Receivable all related to June sales balance is $51,000.Operating expenses for the quarter are budgeted at $464,000,which includes $18,000 of depreciation.Cash expenses are paid in the month incurred.Cash purchases for merchandise inventory are budgeted at $392,000 for the quarter.What is the projected cash balance at the end of the third quarter?
A) $113,000
B) $73,000
C) $4,000
D) $131,000

Question

Quizplus · Accepted Answer

$870,000 x 80% + $290,000 x 20% x 2 - $392,000 - $446,000 + $48,000 + $51,000 = $73,000

Trail Industries Is Preparing Its Cash Budget for the Third