Question
Flake Pharmaceuticals is preparing its cash budget for the fourth quarter of the current year. Sales for the fourth quarter are budgeted at $1,200,000 ($400,000
Flake Pharmaceuticals is preparing its cash budget for the fourth quarter of the current year. Sales for the fourth quarter are budgeted at $1,200,000 ($400,000 per month). Sales are 30% cash, with the remaining 70% on credit which is collected in the month following the month of sale. On September 30, the cash balance is $100,000, and the Accounts Receivable (all related to September sales) balance is $250,000. Operating expenses for the quarter are budgeted at $650,000, which includes $27,000 of depreciation. Cash expenses are paid in the month incurred. Cash purchases for merchandise inventory are budgeted at $262,000 for the quarter. What is the projected cash balance at the end of the fourth quarter? ROUND YOUR ANSWER TO WHOLE DOLLARS (#,###). DO NOT INCLUDE A $ IN YOUR ANSWER.
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