Louise, Inc has a cash balance of $20,000 on April 1
The company is now preparing the cash budget for the second quarter. Budgeted cash collections and payments are as follows:
Apr May Jun
Cash collections $22,000 $22,000 $24,000
Cash payments:
Purchases of direct materials 4,600 5,000 6,800
Operating expenses 6,000 4,600 6,000
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 May.
A) $22,000
B) $53,400
C) $48,400
D) $43,800
D .D)
Apr May Jun
Beginning cash balance $20,000 $31,400 $43,800
Plus: Cash receipts 22,000 22,000 24,000
Cash available $42,000 $53,400 $67,800
Less: Cash payments
Purchases of direct materials 4,600 5,000 6,800
Operating expenses 6,000 4,600 6,000
Ending cash balance $31,400 $43,800 $55,000
You might also like to view...
An example of a product-level activity would be equipment set up
Indicate whether the statement is true or false
Mini-Case Question. After extensive market research, Aster Inc decides to enter the household appliances market. The firm launches a line of consumer electronics products, such as ovens and coffee grinders
Aster Inc is most likely to be using which of the following strategies? A) a vertical integration strategy B) a harvest strategy C) a monetize position strategy D) a diversification strategy E) a horizontal integration strategy
Langley Company received merchandise on December 31, 2016. Langley failed to record the purchase on account because the invoice was inadvertently destroyed. The merchandise was, however, included in ending inventory. What would be the effect of this event on the financial statements as of December 31, 2016?
A) assets and liabilities would be understated B) assets and owners' equity would be overstated C) liabilities would be understated and retained earnings overstated D) liabilities would be overstated and retained earnings understated
A disadvantage(s) of observational data would be ________
A) attitudes, motivations and values can't be assessed B) perceptual differences among observers C) infrequent behaviors are too expensive to record D) B and C only E) A, B, and C