Gamma Corp.has prepared a preliminary cash budget for the third 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,calculate the new projected cash balance at the end of August.

Question

Gamma Corp.has prepared a preliminary cash budget for the third 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,calculate the new projected cash balance at the end of August.

Quizplus · Accepted Answer

The new projected cash balance at the end of August is $8,500. This is calculated by adding the beginning cash balance of $5,000 to the net cash inflow of $3,500.