Parker,Inc.has a cash balance of $20,000 on April 1.The company is now preparing the cash budget for the second quarter.Budgeted cash collections and payments are as follows: $$\begin{array} { | l | r | r | r | }
\hline & \text { Apr } & \text { May } & \text { Jun } \
\hline \text { Cash collections } & \$ 24,000 & \$ 24,000 & \$ 24,000 \
\hline \text { Cash payments: } & & & \
\hline \text { Purchases of direct materials } & 6,000 & 5,800 & 5,000 \
\hline \text { Operating expenses } & 3,500 & 5,000 & 4,600 \
\hline
\end{array}$$ There are no budgeted capital expenditures or financing transactions during the quarter.Based on the above data,calculate the projected cash balance at the end of April.

Question

Parker,Inc.has a cash balance of $20,000 on April 1.The company is now preparing the cash budget for the second quarter.Budgeted cash collections and payments are as follows: $$\begin{array} { | l | r | r | r | } 
\hline & \text { Apr } & \text { May } & \text { Jun } \
\hline \text { Cash collections } & \$ 24,000 & \$ 24,000 & \$ 24,000 \
\hline \text { Cash payments: } & & & \
\hline \text { Purchases of direct materials } & 6,000 & 5,800 & 5,000 \
\hline \text { Operating expenses } & 3,500 & 5,000 & 4,600 \
\hline
\end{array}$$ There are no budgeted capital expenditures or financing transactions during the quarter.Based on the above data,calculate the projected cash balance at the end of April.

Quizplus · Accepted Answer

The Answer of Parker,Inc.has a cash balance of $20,000 on April 1.The company is now preparing the cash budget for the second quarter.Budgeted cash collections and payments are as follows: $$\begin{array} { | l | r | r | r | } 
\hline & \text { Apr } & \text { May } & \text { Jun } \
\hline \text { Cash collections } & \$ 24,000 & \$ 24,000 & \$ 24,000 \
\hline \text { Cash payments: } & & & \
\hline \text { Purchases of direct materials } & 6,000 & 5,800 & 5,000 \
\hline \text { Operating expenses } & 3,500 & 5,000 & 4,600 \
\hline
\end{array}$$ There are no budgeted capital expenditures or financing transactions during the quarter.Based on the above data,calculate the projected cash balance at the end of April.

Parker,Inc There Are No Budgeted Capital Expenditures or Financing Transactions During