Sultan Sundries Must Maintain a Minimum Cash Balance of $34,000

question 18

Multiple Choice

Sultan Sundries must maintain a minimum cash balance of $34,000. At the beginning of February the company's cash balance was $60,000. The budget for February is as follows: $$\begin{array} { l r } \text { Total cash receipts } & \$ 250,000 \\\text { Total cash disbursements } & \$ 245,000 \\\text { Net income } & \$ 50,000 \\\text { Purchase machinery by signing a note } & \$ 35,000\end{array}$$ During February, how much will Sultan need to borrow?

• A) $50,000
• B) $0
• C) $25,000
• D) $4,000

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Definitions:

Fundamental Attribution Error

The tendency to overemphasize personality-based explanations for behaviors observed in others while underemphasizing the role and power of situational influences.

Think Alike

A phrase indicating that two or more people have similar thoughts, ideas, or patterns of thinking.

Harmony

A pleasing combination or arrangement of different things, often referring to music, relationships, or the balance in nature.

Self-Serving Bias

The common human tendency to attribute positive events to one's own character but attribute negative events to external factors.