What is the projected cash balance at the end of the third

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Reference no: EM133654293

Question: Ghesling Controls is preparing its cash budget for the third quarter of the current year. Sales for the third quarter are budgeted at $1,500,000 ($500,000 per month). Sales are 20% cash, with the remaining 80% on credit, which is collected in the month following the month of sale. On June 30, the cash balance is $125,000, and the Accounts Receivable (all related to May sales) balance is $375,000. Operating expenses for the quarter are budgeted at $453118, which includes $25246 of depreciation. Cash expenses are paid in the month incurred. Cash purchases for merchandise inventory are budgeted at $351130 for the quarter. What is the projected cash balance at the end of the third quarter?

Reference no: EM133654293

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