Question

Doral Corp. has provided a part of its budget for the third quarter: JulyAugustSeptember Cash Collections$40,000 $45,000 $52,000 Cash Payments Purchases of Inventory 4,500 7,200 4,500 Operating Expenses 7,900 5,600 9,000 Capital expenditures 0 20,000 4,600 The cash balance on July 1 is $12,000. Assume that there will be no financing transactions or costs during the quarter. What is the cash balance at the end of September

Answer 1

Answer:

$39,600

Explanation:

Particulars                                          Amount

Opening cash balance     $12,000

Add: Cash collection        $40,000

Total cash available                           $52,000

Less: Cash payment

Purchase of inventory       $4,500

Operating expenses          $7,900

Capital expenditure            $0          $12,400

Cash balance at the end                   $39,600