Roberts Supply,Inc.provides the following data taken from its third quarter budget: $\begin{array}{|l|l|l|l|}
\hline& \text { Jul } & \text { Aug } & \text { Sep } \
\hline \text { Cash collections } & \$ 81,000 & \$ 65,000 & \$ 56,000 \
\hline \text { Cash payments: } & & & \\hline \text { Purchases of direct materials } & 52,000 & 28,000 & 30,000 \
\hline \text { Operating expenses } & 10,000 & 16,000 & 21,000 \
\hline \text { Capital expenditures } & 0 & 32,000 & 8000\
\hline
\end{array}$ The cash balance on June 30 is projected to be $11,000.Based on the above data,calculate the cash balance the company is projected to have at the end of September.

Question

Roberts Supply,Inc.provides the following data taken from its third quarter budget: $\begin{array}{|l|l|l|l|} 
\hline& \text { Jul } & \text { Aug } & \text { Sep } \
\hline \text { Cash collections } & \$ 81,000 & \$ 65,000 & \$ 56,000 \
\hline \text { Cash payments: } & & & \\hline \text { Purchases of direct materials } & 52,000 & 28,000 & 30,000 \
\hline \text { Operating expenses } & 10,000 & 16,000 & 21,000 \
\hline \text { Capital expenditures } & 0 & 32,000 & 8000\
\hline
\end{array}$ The cash balance on June 30 is projected to be $11,000.Based on the above data,calculate the cash balance the company is projected to have at the end of September.

Quizplus · Accepted Answer

The cash balance at the end of September is projected to be $16,000. This is calculated by adding the cash collections for July, August, and September ($81,000 + $65,000 + $56,000 = $202,000) and subtracting the cash payments for July, August, and September ($52,000 + $28,000 + $30,000 + $10,000 + $16,000 + $21,000 + $0 + $32,000 + $8,000 = $186,000). The resulting amount is then added to the cash balance on June 30 ($11,000) to arrive at the projected cash balance at the end of September ($16,000).

Roberts Supply,Inc The Cash Balance on June 30 Is Projected to Be