Biology Forums - Study Force

On June 30, Alpha Company's cash balance is $4,000. Alpha is now preparing their cash budget for the third quarter of the year. The following data is provided:

Cash budget   July   Aug   Sep
Beginning cash balance   $4,000   $8,000   $6,958
Plus: Cash collections   50,000   40,000   49,000
Cash available   $54,000   $48,000   $55,958
Less: Cash payments         
Purchases of direct materials   31,000   22,000   17,100
Operating expenses   12,000   9,000   11,000
Capital expenditures   13,000   25,000   0
Interest expense at 5%   0   42   104
Less: Total cash payments   $56,000   $56,042   $28,204
Ending cash balance before financing   $(2,000)   $(8,042)   $27,754
Minimum cash balance desired   (5,000)   (5,000)   (5,000)
Cash excess/(deficiency)   $(7,000)   $(13,042)   $22,754
Financing         
Borrowing at end of month   10,000   15,000   
Principal repayments at end of month         $(20,000)
Total effects of financing   10,000   15,000   (20,000)
Ending cash balance   $8,000   $6,958   $7,754

The amount of cash that should be shown in the budgeted balance sheet as of September 30 would be ________.
A) $55,958
B) $7,754
C) $6,958
D) $22,754

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Makes perfect sense, thx