The Gadget Company Manufactures a Wrist Watch for Spy Agencies

The Gadget Company manufactures a wrist watch for spy agencies. The watch has a built-in cell phone, Geiger counter, compass, magnet and garroting wire. Forecasted sales are shown on the top row of the table. Forecasted cash inflows and outflows are also shown in the table. The cash balance at the end of May is $30,000. What is the cash balance at the end of June? Sales Forecast Cash Budget
The Gadget Company
$$\begin{array} { | l | c | c | c | } \hline & \text { April } & \text { May } & \text { June } \\\hline \text { Sales forecast } & \$ 30,000 & \$ 30,000 & \$ 30,000 \\\hline \text { Total Cash inflows } & \$ 30,000 & \$ 30,000 & \$ 30,000 \\\hline \text { Total Cash Outflows } & \$ 13,750 & \$ 13,750 & \$ 13,750 \\\hline \text { Net cash flow } & & & \\\hline \text { Beginning Cash Balance } & & & \\\hline \text { Plus:Net Cash Flows } & & & \\\hline \text { Ending Cash Balance } & & \$ 30,000 & \\\hline\end{array}$$

A) $36,750
B) $42,250
C) $46,250
D) $46,750
E) $50,000