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

Question

Quizplus · Accepted Answer

Ending Cash Balance in June = Beginning Cash Balance in June + Net Cash Flows for June
Net Cash Flows = Cash Inflows - Cash Outflows
Net Cash Flows June = 30,000 - 13,750 = $16,250
Ending Cash Balance in June = $30,000 + $16,250
Ending Cash Balance in June = $46,250

The Gadget Company Manufactures a Wrist Watch for Spy Agencies