Answer:
$8,500
Explanation:
The computation of the cash balance at the end of March is shown below:
Opening Cash Balance $3,000
Add: Cash Collection from Sales $53,500 (($50,000 × 65%) +($60,000 × 35%)
Total Cash Available $56,500
Less: Cash Payments
Inventory $19,000 (($20,000 × 50%) + ($18000 × 50%)
S&A Expense $4,000
Loan & Int Payment $25,000
Depreciation - (Non Cash Expense)
Closing Cash Balance $8,500
We simply added the cash receipts and deduct the cash payments to the opening cash balance so that the ending cash balance could come
