Nobell Inc. has a cash balance of $20,000 on April 1, 2015. They are now preparing the cash budget for the second quarter. Budgeted cash collections and payments are as follows: $\begin{array}{|l|r|r|r|}
\hline&{\text { Apr }} &{\text { May }} &{\text { June }} \
\hline \text { Cash collections } & \$ 25,000 & \$ 22,000 & \$ 20,000 \
\hline \text { Cash payments: } & & & \
\hline \text { Purchases of inventory } & 5,800 & 7,000 & 6,200 \
\hline \text { Operating expenses } & 3,500 & 4,600 & 5,300 \
\hline
\end{array}$ There are no budgeted capital expenditures or financing transactions during the quarter.
-Based on the above data, calculate the projected cash balance at the end of June.

Question

Nobell Inc. has a cash balance of $20,000 on April 1, 2015. They are now preparing the cash budget for the second quarter. Budgeted cash collections and payments are as follows: $\begin{array}{|l|r|r|r|} 
\hline&{\text { Apr }} &{\text { May }} &{\text { June }} \
\hline \text { Cash collections } & \$ 25,000 & \$ 22,000 & \$ 20,000 \
\hline \text { Cash payments: } & & & \
\hline \text { Purchases of inventory } & 5,800 & 7,000 & 6,200 \
\hline \text { Operating expenses } & 3,500 & 4,600 & 5,300 \
\hline
\end{array}$ There are no budgeted capital expenditures or financing transactions during the quarter. 
-Based on the above data, calculate the projected cash balance at the end of June.

Quizplus · Accepted Answer

The Answer of Nobell Inc. has a cash balance of $20,000 on April 1, 2015. They are now preparing the cash budget for the second quarter. Budgeted cash collections and payments are as follows: $\begin{array}{|l|r|r|r|} 
\hline&{\text { Apr }} &{\text { May }} &{\text { June }} \
\hline \text { Cash collections } & \$ 25,000 & \$ 22,000 & \$ 20,000 \
\hline \text { Cash payments: } & & & \
\hline \text { Purchases of inventory } & 5,800 & 7,000 & 6,200 \
\hline \text { Operating expenses } & 3,500 & 4,600 & 5,300 \
\hline
\end{array}$ There are no budgeted capital expenditures or financing transactions during the quarter. 
-Based on the above data, calculate the projected cash balance at the end of June.

Nobell Inc There Are No Budgeted Capital Expenditures or Financing Transactions During