• Profile photo of John Moffat says

      What opening inventory???

      I assume that you have the Course Notes in front of you (otherwise there would be no point in watching the lecture) and there is no mention of any opening inventory (and it would be irrelevant anyway since the questions tells us the purchases each month).

      (The $15,000 in the question is the opening cash balance – i.e. the cash at the start of January – and this is dealt with.)

      • Profile photo of John Moffat says

        True – it is not mentioned directly. However, since we are asked for a cash budget for Jan, Fed, Mar, it is reasonable to assume that it the opening balance for the period in question. (And if it was the opening balance at the beginning of November, then the question would be impossible)

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