Problem
Nobell Inc. has a cash balance of $20,000 on April 1, 2015. They are now preparing the cash budget for the second quarter. Budgeted cash collections and payments are as follows:
|
|
Apr
|
May
|
June
|
|
Cash collections
|
$25,000
|
$22,000
|
$20,000
|
|
Cash payments:
|
|
|
|
|
Purchases of inventory
|
5,800
|
7,000
|
6,200
|
|
Operating expenses
|
3,500
|
4,600
|
5,300
|
There are no budgeted capital expenditures or financing transactions during the quarter. Based on the above data, calculate the projected cash balance at the end of April. Please show your work and the identify your answer with "The Projected Cash balance at the end of April is".