Baltimore Baking Is Preparing Its Cash Budget and Expects to Have

question 101

Multiple Choice

Baltimore Baking is preparing its cash budget and expects to have sales of $30,000 in January, $35,000 in February, and $35,000 in March.If 20% of sales are for cash, 40% are credit sales paid in the month after the sale, and another 40% are credit sales paid 2 months after the sale, what are the expected cash receipts for March?

• A) $24,057
• B) $26,730
• C) $29,700
• D) $33,000
• E) $36,300

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Definitions:

Startups

Newly established businesses, typically in the technology sector, focused on a unique product or service.

Existing Businesses

Companies or enterprises that have been operational for a period of time and are not newly established.

Franchises

Business models where individuals can buy the rights to open and operate a location of a larger company.

Capital Intensive

A characteristic of businesses that require large investments in capital assets, like machinery and equipment, to produce goods or services.