Chaterlain Company is preparing its budget for the 3 rd quarter. Cash balance at June 30 was $11,000. Additional budgeted data is provided here:
$$\begin{array} { | l | r | r | r | }
\hline &{ \text { Jul } } & { \text { Aug } } & { \text { Sep } } \
\hline \text { Cash collections } & \$ 42,000 & \$ 51,000 & \$ 39,000 \
\hline \text { Cash payments: } & & & \
\hline \text { Purdhrses of invertory } & 14,000 & 9,000 & 11,000 \
\hline \text { Operating Experses } & 25,000 & 22,700 & 30,900 \
\hline \text { Capital expenditures } & 5,200 & 9,000 & 14,000 \
\hline
\end{array}$$
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What amount should be shown in the cash budget for the cash balance at the end of July?

Question

Chaterlain Company is preparing its budget for the 3 rd quarter. Cash balance at June 30 was $11,000. Additional budgeted data is provided here:
$$\begin{array} { | l | r | r | r | } 
\hline &{ \text { Jul } } &  { \text { Aug } } & { \text { Sep } } \
\hline \text { Cash collections } & \$ 42,000 & \$ 51,000 & \$ 39,000 \
\hline \text { Cash payments: } & & & \
\hline \text { Purdhrses of invertory } & 14,000 & 9,000 & 11,000 \
\hline \text { Operating Experses } & 25,000 & 22,700 & 30,900 \
\hline \text { Capital expenditures } & 5,200 & 9,000 & 14,000 \
\hline
\end{array}$$
-
What amount should be shown in the cash budget for the cash balance at the end of July?

Quizplus · Accepted Answer

The ending cash balance for July is calculated as: Beginning cash balance ($11,000) + Cash collections ($42,000) - Cash payments (Purchases of inventory $14,000 + Operating expenses $25,000 + Capital expenditures $5,200) = $8,800.

Chaterlain Company Is Preparing Its Budget for the 3rd Quarter

Chaterlain Company Is Preparing Its Budget for the 3^rd Quarter