Answer:
$67,900
Explanation:
As per given data
Sales for September $225,000 x 120% = $270,000
Purchases for September = $195,000
September cash flows
Collection from September sales = $270,000 x 30% = $81,000
Collection from August sales = $225,000 x 70% = $157,500
Total Collection in September = $81,000 + $157,500 = $238,500
Payments of September purchases = $195,000 x 20% = $39,000
Payments of August purchases = $175,000 x 80% = $140,000
Total Payments in September = $39,000 + $140,000 = $179,000
Cash Balance at the end of September = Beginning cash balance + Cash collections - cash payments = $8,400 + $238,500 - $179,000 = $67,900
