Edelmar Corp. has prepared a preliminary cash budget for the third quarter as shown below:Cash BudgetBeginning cash balancePlus: Cash collectionsCash availableLess: Cash payments:Purchases of direct materialsJuly$36,000$56,00092,000Operating expensesCapital expendituresEnding cash balanceAug$17,000$52,000$69,00034,00041,0000$17,000Subsequently, the marketing department revised its figures for cash collections. New data are as follows: $54,000 in July, $55,000 in August, and $44,000 inSeptember. Based on the new data, calculate the new projected cash balance at the end of JulySep$21,50047,800$69,3009,00030,5008,000$21,50010,00030,8007,700$20,800

Cash budget is an estimation of cash inflows and cash outflows over a period of time.it can be…

Cash Budget Beginning cash balance Plus: Cash collections Cash available Less: Cash payments: Purchases of direct materials July Aug Sep $21,500 $36,000 $17,000 $56,000 $52,000 47,800 92,000 $69,000 $69,300 34,000 41,000 0 $17,000 Subsequently, the marketing department revised its figures for cash collections. New data are as follows: $54,000 in July, $55,000 in August, and $44,000 in September. Based on the new data, calculate the new projected cash balance at the end of July Operating expenses Capital expenditures Ending cash balance 9,000 30,500 8,000 $21,500 10,000 30,800 7,700 $20,800

Cash Budget Beginning cash balance Plus: Cash collections Cash available Less: Cash payments: Purchases of direct materials July Aug Sep $21,500 $36,000 $17,000 $56,000 $52,000 47,800 92,000 $69,000 $69,300 34,000 41,000 0 $17,000 Subsequently, the marketing department revised its figures for cash collections. New data are as follows: $54,000 in July, $55,000 in August, and $44,000 in September. Based on the new data, calculate the new projected cash balance at the end of July Operating expenses Capital expenditures Ending cash balance 9,000 30,500 8,000 $21,500 10,000 30,800 7,700 $20,800

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter16: Supply Chains And Working Capital Management

Section: Chapter Questions

Problem 16MC: In an attempt to better understand RR’s cash position, Johnson developed a cash budget for the first...

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