The Following Information for the Second Quarter of 2011 Pertains

question 109

Multiple Choice

The following information for the second quarter of 2011 pertains to Huffington Company:

•Cash is collected from customers in the following manner:

•40% of purchases are paid for in cash in the month of purchase, and the balance is paid the following month.
•Labor costs are 20% of sales. Other operating costs are $45,000 per month (including $12,000 of depreciation) . Both of these are paid in the month incurred.
•The cash balance on June 1 is $6,000. A minimum cash balance of $4,500 is required at the end of the month. Money can be borrowed in multiples of $3,000.
•No loans outstanding on June 1.
-What is the ending cash balance for June?

• A)($50,000)
• B)$6,000
• C)$5,400
• D)$11,400

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Definitions:

Centralized Power

A political system where a central authority controls all or most of the government functions and decision-making processes.

Lavrenty Beria

A prominent Soviet politician and head of the secret police under Stalin, notorious for his role in political purges and terror.

Secret Police

A covert law enforcement body that operates in secrecy to protect political power, often through surveillance, espionage, and suppression of dissent.

Economic Recovery

A period in which economic activity rebounds following a recession, characterized by increases in GDP, employment, and consumer spending.