Jager Corp. has propared a preliminary cash budget for the third quarter as show

Question

Jager Corp. has propared a preliminary cash budget for the third quarter as shown below Cash Budget Ju AugSep $34,000 $7400 $13,400 $49400 $53,000 45200 83,400 $60,400 $68,600 Beginning cash balance Plus Cash collections Cash available Less: Cash payments 38,000 9,000 10,000 40.000 30000 30,700 0 8,000 7,000 7,400 $13,400 $10,900 Purchases of direct materials Operating expenses Caphal expenditures Ending cash balance flows: SS3.000 in Ju S55,000 i Agust, nS43,000 n Sephr ber.Based on to new am, a0 the new Subsequently, the marketing department nevised its figures for cash collections New data are as projected cash balance at the end of September OA. $19,000 B. $14,300 OC. $11,000 OD. S10.900

Explanation / Answer

Calculation of projected cash balance at the end of september: Particulars Amount Ending cash balance of september 10900 Add: Increase in cash collection of july (53000-49400) 3600 Add: Increase in cash collection of August (55000-53000) 2000 Less: Decrease in cash collection of September (45200-43000) 2200 Projected cash balance of september (10900+3600+2000-2200) 14300 So correct answer is B) $14300

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