Roberts Supply, Inc. provides the following data taken from its third quarter budget: $$\begin{array} { | l | r | r | r | }
\hline &{ \text { Jul } } & { \text { Aug } } & { \text { Sep } } \
\hline \text { Cash collections } & \$ 82,000 & \$ 65,000 & \$ 60,000 \
\hline \text { Cash payments: } & & & \
\hline \text { Purchases of direct materials } & 48,000 & 29,000 & 50,000 \
\hline \text { Operating expenses } & 9000 & 16,000 & 20,000 \
\hline \text { Capital expenditures } & 0 & 32,000 & 6000 \
\hline
\end{array}$$ The cash balance on June 30 is projected to be $11,000. Based on the above data, calculate the cash balance the company is projected to have at the end of September.

Question

Roberts Supply, Inc. provides the following data taken from its third quarter budget: $$\begin{array} { | l | r | r | r | } 
\hline &{ \text { Jul } } &  { \text { Aug } } &  { \text { Sep } } \
\hline \text { Cash collections } & \$ 82,000 & \$ 65,000 & \$ 60,000 \
\hline \text { Cash payments: } & & & \
\hline \text { Purchases of direct materials } & 48,000 & 29,000 & 50,000 \
\hline \text { Operating expenses } & 9000 & 16,000 & 20,000 \
\hline \text { Capital expenditures } & 0 & 32,000 & 6000 \
\hline
\end{array}$$ The cash balance on June 30 is projected to be $11,000. Based on the above data, calculate the cash balance the company is projected to have at the end of September.

Quizplus · Accepted Answer

Based on the data given, the total cash receipts for the third quarter are $390,000 and the total cash disbursements for the same period are $358,000. Therefore, the net cash inflow for the quarter is $32,000 ($390,000 - $358,000). Adding this to the projected cash balance of $11,000 on June 30 gives us a projected cash balance of $43,000 ($11,000 + $32,000) at the end of September. Therefore, the correct answer is A) $8000, as it is not mentioned in the given options.

Roberts Supply, Inc The Cash Balance on June 30 Is Projected to Be