Pentangle Company has prepared a preliminary cash budget for the 3^rd quarter as shown below: Subsequently, the marketing department revised its figures for cash collections. New data are as follows: $52,000 in July, $50,000 in August, and $42,000 in September. Based on the new data, what is the new projected cash balance at the end of July?

Question

Quizplus · Accepted Answer

To calculate the new projected cash balance at the end of July, we need to subtract the estimated cash disbursements for July from the estimated cash receipts for July:

$52,000 - $44,000 = $8,000

Then we add the beginning cash balance for July to that to get the new projected cash balance:

$20,500 + $8,000 = $28,500

Therefore, the new projected cash balance at the end of July is $28,500. The closest answer choice is C) $7,000.

Pentangle Company Has Prepared a Preliminary Cash Budget for the 3rd

Pentangle Company Has Prepared a Preliminary Cash Budget for the 3^rd