Bantam Industries Has Budgeted the Following Information for March If There Is a Cash Shortage, the Company Borrows Money

question 70

Multiple Choice

Bantam Industries has budgeted the following information for March: $\begin{array}{llr} \text { Cash receipts } &\$271,000\\ \text {Beginning cash balance } &5,000\\ \text { Cash payments } &280,000\\ \text { Desired ending cash balance } &25,000\end{array}$
If there is a cash shortage, the company borrows money from the bank. All cash is borrowed at the beginning of the month in $1,000 increments, and interest is paid monthly at 1% on the first day of the following month. The company had no debt before March 1. How much cash will the company need to borrow in March?

• A) $25,000
• B) $29,000
• C) The company should not need to borrow any cash in March
• D) $4,000

Identify the drawbacks and strategies of intensive distribution.

Differentiate between types of products based on consumer behavior and demand.

Understand the rationale behind offering deep and wide assortments in a product portfolio.

Grasp the concept of geographic pricing and its application in business markets.

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Definitions:

Production Function

An equation or model that describes the relationship between inputs (like labor and capital) and the maximum output that can be produced with those inputs.

Cost Function

An equation or formula that determines the total cost of production based on the quantity of output produced, including both fixed and variable costs.

Cube

A three-dimensional shape with six square faces, all of identical size, and eight vertices.

Competitive Firm

A company that operates in a market with many sellers and buyers, where no single entity can influence the market price.