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 Purchases of Investments 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 borrowings in April would be:
A. $20,000 shortage.
B. $40,000 surplus.
C. $40,000 shortage.
D. There is no cash surplus or shortage.
Answer: A
Business
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