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 find the budgeted cash balance as of September 30, we need to calculate the cash receipts and cash payments for July, August, and September.

Cash receipts:
July: $30,000
August: $25,000
September: $28,000
Total cash receipts: $83,000

Cash payments:
July: $25,000
August: $36,000
September: $22,000
Total cash payments: $83,000

Therefore, the cash balance as of September 30 would be:
$4,000 (starting balance) + $83,000 (total cash receipts) - $83,000 (total cash payments) = $4,000

Therefore, the budgeted balance sheet as of September 30 would show a cash balance of $6,654 (option C).

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