The Brady Company Has Budgeted the Following Activity for April

question 8

Multiple Choice

The Brady Company has budgeted the following activity for April:
Sales of $1,000,000 all in cash
The cost of goods sold is 75% of the selling price
Inventory purchases of $800,000 were paid for in cash
Selling and Administrative expenses are budgeted at $80,000 and are paid in cash in the period incurred.
Depreciation expense for April is budgeted at $14,000
The cash balance at March 31^st is $45,000
The budgeted cash balance at the end of April will be:

• A)$165,000
• B)$120,000
• C)$151,000
• D)$(85,000)

---

Definitions:

High Risk

A situation or investment that carries a significant chance of loss or failure.

High Value

Denoting something that possesses great importance, worth, or usefulness, especially in terms of monetary or material worth.

Procurement

The process of sourcing and acquiring goods and services from external sources for an organization.