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UNO
2 months ago
14

Nikolas Industries has a cash balance of $20,000 on July 1, 20x8. The company is in the process of preparing the cash budget for

the third quarter, with budgeted cash collections and payments as follows:
July August September
Cash Collections $25,000 $22,000 $20,000
Cash Payments:
Purchases of Inventory 5,800 7,000 6,200
Operating Expenses 3,500 4,600 5,300

There are no budgeted capital expenditures or financing transactions during the quarter. Using the data above, what is the projected cash balance at the end of September?
Business
1 answer:
harina [3.8K]2 months ago
5 0

Response:

$54,600

Details:

Cash Budget for Q3

                                                July              Aug                  Sep

Income:

Cash Inflows                    $25,000      $22,000          $20,000

Aggregate Income                $25,000      $22,000          $20,000

Outflows:

Inventory Acquisitions       $5,800       $7,000               $6,200

Operating Costs               $3,500       $4,600               $5,300

Total Outflows                  $9,300       $11,600              $11,500

Net Income                       $15,700      $10,400              $8,500

Carryover Balance               $20,000      $35,700            $46,100

Ending Balance                    $35,700      $46,100            $54,600

Thus,

The expected cash balance at the conclusion of September amounts to $54,600

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