The Brady Company has budgeted the following activity for April:
Sales of $1,000,000 all in cash
The cost of goods sold is 75% of the selling price
Inventory purchases of $800,000 were paid for in cash
Selling and Administrative expenses are budgeted at $80,000 and are paid in cash in the period incurred.
Depreciation expense for April is budgeted at $14,000
The cash balance at March 31^st is $45,000
The budgeted cash balance at the end of April will be:

Question

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The budgeted cash balance at the end of April is $165,000. This is calculated as follows:Beginning cash balance: $45,000Add: Cash from sales: $1,000,000Less: Cost of goods sold: $750,000Less: Inventory purchases: $800,000Less: Selling and administrative expenses: $80,000Less: Depreciation expense: $14,000Ending cash balance: $165,000

The Brady Company Has Budgeted the Following Activity for April