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Consider the following third-quarter budget data for TAP & Brothers: TAP & Brothers Third-Quarter Budget Data July August September Credit Sales 255,538 264,664 287,956 Credit

Consider the following third-quarter budget data for TAP & Brothers:

TAP & Brothers Third-Quarter Budget Data

July

August

September

Credit Sales

255,538

264,664

287,956

Credit Purchases

97,184

115,062

131,463

Wages, Taxes, and Expenses

26,305

31,169

33,665

Interest

7,125

7,788

8,043

Equipment Purchases

54,430

61,875

0

The company predicts that 4% of its credit sales will never be collected, 30% of its sales will be collected in the month of the sale, and the remaining 66% will be collected in the following month. Credit purchases will be paid in the month following the purchase.

  • In June, credit sales were $138,803, and credit purchases were $102,722
  • Julys beginning cash is $184,421

If TAP maintains a policy of always keeping a minimum cash balance of $75,000 as a buffer against uncertainty and forecasting errors, what is the cash surplus/deficit at the end of the quarter (i.e., end of September)? (Answer surplus as a positive number or deficit as a negative number. Round answer to 0 decimal places. Do not round intermediate calculations)

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