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Blossom Industries is preparing its cash budget for the third quarter of the current year. Sales for the third quarter are budgeted at $867000 ($289000
Blossom Industries is preparing its cash budget for the third quarter of the current year. Sales for the third quarter are budgeted at $867000 (\$289000 per month). Sales are 80% cash, with the remaining 20% on credit which is collected in the month following the month of sale. On June 30, the cash balance is $48000, and the Accounts Receivable (all related to June sales) balance is $50000. Operating expenses for the quarter are budgeted at $464000, which includes $17000 of depreciation. Cash expenses are paid in the month incurred. Cash purchases for merchandise inventory are budgeted at $390000 for the quarter. What is the projected cash balance at the end of the third quarter? $128000$3200$111000$70200
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