Chatelain Company is preparing its budget for the third quarter
The cash balance on June 30 was $32,000. Additional budgeted data are provided here:
Jul Aug Sep
Cash collections $53,000 $51,000 $53,000
Cash payments
Purchases of direct materials 20,000 26,000 22,000
Operating expenses 23,000 33,000 22,000
Capital expenditures 14,000 8,000 15,000
What amount should be shown in the cash budget for the cash balance at the end of July?
A) -$25,000
B) $28,000
C) -$4,000
D) $85,000
B .B)
Beginning cash balance $32,000
Plus: Cash collections 53,000
Cash available $85,000
Less: Payments for:
Purchases of direct materials 20,000
Operating expenses 23,000
Capital expenditures 14,000
Ending cash balance $28,000
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