On June 30, Kahlil Company's cash balance is $4,000. Kahlil is now preparing their cash budget for the third quarter of the year. The following data is provided: The amount of cash that should be shown in the budgeted balance sheet as of September 30 would be ________.

Question

On June 30, Kahlil Company's cash balance is $4,000. Kahlil is now preparing their cash budget for the third quarter of the year. The following data is provided:  The amount of cash that should be shown in the budgeted balance sheet as of September 30 would be ________.

Quizplus · Accepted Answer

To calculate the budgeted cash balance as of September 30, we need to consider the cash receipts and cash disbursements for the months of July, August, and September.

From the provided data, we know that the total cash receipts for the quarter will be $72,000 and the total cash disbursements will be $66,546.

To calculate the budgeted cash balance as of September 30, we need to start with the current cash balance of $4,000 and add the cash receipts for July, August, and September. We then need to subtract the cash disbursements for July, August, and September.

Using this method, we get:

July cash balance = $4,000 + $24,000 - $22,466 = $5,534
August cash balance = $5,534 + $24,000 - $22,540 = $7,994
September cash balance = $7,994 + $24,000 - $21,540 = $10,454

Therefore, the budgeted cash balance as of September 30 is $7,454 (Option C).

On June 30, Kahlil Company's Cash Balance Is $4,000