The Following Information Was Taken from Hurlbert Company Cash Budget

question 126

Multiple Choice

The following information was taken from Hurlbert Company cash budget for the month June $\begin{array}{lr}\text { Beginning cash balance } & \$ 46,000 \\\text { Cash receipts } & 62,000 \\\text { Cash disbursements } & 78,000\end{array}$ If the company has a policy of maintaining end of the month cash balance of $40,000, the amount the company would have to borrow is

• A) $24,000.
• B) $10,000.
• C) $16,000.
• D) $0.

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Definitions:

Exported Good

A product produced domestically but sold to buyers in another country.

Free International Trade

Trade between countries without restrictions such as tariffs, quotas, or other barriers.

Protectionist Policies

Economic policies designed to restrict international trade to protect domestic industries from foreign competition.

Domestic Surplus

The extra quantity of a good that producers are willing to supply over what is demanded by domestic consumers, often measured when analyzing the impact of international trade.