Doral Corp.has provided a part of its budget for the third quarter: The cash balance on July 1 is $12,000.Assume that there will be no ﬁnancing transactions or costs during the quarter.What is the cash balance at the end of July?

Question

Doral Corp.has provided a part of its budget for the third quarter:  The cash balance on July 1 is $12,000.Assume that there will be no ﬁnancing transactions or costs during the quarter.What is the cash balance at the end of July?

Quizplus · Accepted Answer

To determine the cash balance at the end of July, we need to subtract the total cash disbursements ($48,000) and add the total cash receipts ($39,600) to the beginning balance ($12,000). This gives us a cash balance of $3,600 at the end of July.