Gyrl Skateboards manufactures skateboard decks.Guy Gyrl,the CEO,is forecasting cash flows for the next few months.Forecasted sales are shown on the top row of the table.Forecasted cash inflows and outflows are also shown in the table.If Gyrl's starts December with $50,000 of cash in the bank,then what will its cash balance be at the end of January?
Gyrl Skateboards Inc.
Sales Forecast and Cash Budget ($000s)

Question

Quizplus · Accepted Answer

Net Cash Flows = Cash Inflows - Cash Outflows
Net Cash Flows December = 4,106 - 3,877 = $229
Net Cash Flows January = 4,179 - 3,710 = $469
Cash Balance at the End of Dec. = Cash Balance, Start of Dec. + Net Cash Flows for Dec.
Cash Balance at the End of Dec. = $50 + $229
Cash Balance at the End of Dec. = $279
Cash Balance at the End of January = Cash Balance, Start of Jan. + Net Cash Flows for Jan.
Cash Balance at the End of January = $279 + $469
Cash Balance at the End of January = $748 or $748,000

Gyrl Skateboards Manufactures Skateboard Decks