At June 30, 2012, Alpha Company's cash balance is $4,000. Alpha is now preparing their cash budget for the third quarter of 2012. The following data is provided:

For the budgeted balance sheet at September 30, 2012, what amount of Cash should be shown?

Question

At June 30, 2012, Alpha Company's cash balance is $4,000. Alpha is now preparing their cash budget for the third quarter of 2012. The following data is provided:

For the budgeted balance sheet at September 30, 2012, what amount of Cash should be shown?

Quizplus · Accepted Answer

We need to calculate the ending cash balance by considering all the cash inflows and outflows for the third quarter. Adding up the cash inflows and subtracting the cash outflows, we get a projected ending cash balance of $5,254. This is the amount of Cash that should be shown on the budgeted balance sheet at September 30, 2012.

At June 30, 2012, Alpha Company's Cash Balance Is $4,000