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Sheridan Industries is preparing its cash budget for the third quarter of the current year. Sales for the third quarter are budgeted at $705000 ($235000

Sheridan Industries is preparing its cash budget for the third quarter of the current year. Sales for the third quarter are budgeted at $705000 ($235000 per month). Sales are 70% cash, with the remaining 30% on credit which is collected in the month following the month of sale. On June 30, the cash balance is $38200, and the Accounts Receivable (all related to June sales) balance is $41800. Operating expenses for the quarter are budgeted at $372000, which includes $15700 of depreciation. Cash expenses are paid in the month incurred. Cash purchases for merchandise inventory are budgeted at $314100 for the quarter. To prepare for the busy fourth quarter, Sheridans desired cash balance on September 30 is $122000. How much financing will the company need at the end of the third quarter? $135400 $77900 $7400 $23100

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