Hilliard Company budgeted the following transactions for April Year 2: Sales (75% collected in month of sale)$200,000 Cash operating expenses 105,000 Cash purchase of investment 75,000 Cash payment of debt 15,000 Depreciation on operating assets 12,000 The beginning cash balance was $50,000. The company desires to have a $25,000 ending cash balance. The surplus (or shortage) of cash before considering any financing activities (that is, borrowings or repayments) during in April would be:
A. $40,000 surplus.
B. $40,000 shortage.
C. There is no cash surplus or shortage.
D. $20,000 surplus.
Answer: D
Business
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