Answer:
Ending cash balance $67,900
Explanation:
The computation of the ending cash balance is given below:
Schedule of expected cash collection for September
From august sales (70% of 225,000) 157,500
From sept. sales (30% of 270,000) 81,000
Total cash collection$238,500
Now
Schedule of expected cash payment
For august purchase (80% of 175,000) 140,000
Foor september purchase (20% of 195,000) 39,000
Total cash payment $179,000
Now
Beginning cash balance 8,400
Budgeted cash collection 238,500
Total available cash 246,900
Budgeted cash payment -179,000
Ending cash balance $67,900
