On June 30,Alpha Company's cash balance is $4,000.Alpha 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,Alpha Company's cash balance is $4,000.Alpha 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 for September 30, we need to consider the following:

1. Beginning balance (June 30) = $4,000

2. Expected cash receipts for Q3 = $60,000
- July: $25,000
- August: $20,000
- September: $15,000

3. Expected cash disbursements for Q3 = $57,246
- July: $22,048
- August: $20,133
- September: $15,065

4. Expected purchase of long-term assets in September = $6,000

Using the above information, we can calculate the budgeted cash balance for September 30 as follows:

Beginning balance + cash receipts - cash disbursements - purchase of long-term assets
= $4,000 + $60,000 - $57,246 - $6,000
= $7534

Therefore, the amount of cash that should be shown in the budgeted balance sheet as of September 30 would be $7,754 (option C).

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