Question
Berman Company is preparing its budget for the third quarter. Cash balance on July 31 was $30,000.00. Assume there is no minimum balance of cash
Berman Company is preparing its budget for the third quarter. Cash balance on July 31 was $30,000.00. Assume there is no minimum balance of cash required and no borrowing is undertaken. Additional budgeted data are provided here:
| July | Aug | Sep | |
| Cash collections | $53,000.00 | $51,000.00 | $56,000.00 |
| Cash payments | |||
| Purchases of direct materials | 20,000 | 22,000 | 25,000 |
| Operating expenses | 22,000 | 32,000 | 22,000 |
| Capital expenditures | 15,000 | 10,000 | 9,000 |
Calculate the projected balance of cash at the end of August.
A. $17000
B. $115000
C. $27000
D. $34000
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Cost Management A Strategic Emphasis
Authors: Edward Blocher, David Stout, Paul Juras, Gary Cokins
7th edition
77733770, 978-0077733773
