question

You are an accountant that has been appointed to the help Mr Lloyd assess his next year cash position as at 30 June 2021. For the year he provides you with the following estimates:

1 July 2020, cash balance $10,000

Cash sales $385,000

Credit sales $300,000

Accounts receivable payments $200,000

Inventory purchases for cash $200,000

Inventory purchases on credit $400,000

Payments to accounts payable $300,000

Cash proceeds from sale of old motor vehicle $10,000

Purchase of new motor vehicle using a long-term loan $20,000

Operating expenses (including depreciation $5,000) $100,000

All operating expenses are paid for with cash.

a)What is the budgeted total cash inflows for the year?

b- what is the budgeted cash Outflows for the year ?

c-What is the budgeted closing cash balance as at 30 June 2021.