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 add the total cash inflows and subtract the total cash outflows for the third quarter. 
Total cash inflows: 
- July receipts: $16,100 
- August receipts: $14,800 
- September receipts: $18,200 
Total cash inflows: $49,100

Total cash outflows: 
- July disbursements: $17,300 
- August disbursements: $18,900 
- September disbursements: $6,000 
Total cash outflows: $42,200

Cash balance as of September 30: 
Beginning cash balance (June 30): $4,000 
Plus total cash inflows: $49,100 
Minus total cash outflows: $42,200 
Budgeted cash balance as of September 30: $10,900

Option C is the closest to this result: $6,654 so it's the best choice.

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