Iowa Supply, Inc provides the following data taken from its third quarter budget
Jul Aug Sep
Cash collections $81,000 $65,000 $56,000
Cash payments:
Purchases of direct materials 52,000 28,000 30,000
Operating expenses 10,000 16,000 21,000
Capital expenditures 0 32,000 8,000
The cash balance on June 30 is projected to be $11,000. Based on the above data, calculate the cash balance the company is projected to have at the end of September.
A) $16,000
B) $19,000
C) $75,000
D) $59,000
A .A)
July Aug Sep
Beginning cash balance $11,000 $30,000 $19,000
Plus: Cash receipts 81,000 65,000 56,000
Cash available $92,000 $95,000 $75,000
Less: Cash payments
Purchases of direct materials 52,000 28,000 30,000
Operating expenses 10,000 16,000 21,000
Capital expenditures 0 32,000 8,000
Ending cash balance $30,000 $19,000 $16,000
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