For the Period, a Firm Collected $38,200 on Accounts Receivable

question 78

Multiple Choice

For the period, a firm collected $38,200 on accounts receivable, paid $19,700 to suppliers on trade credit, paid $12,000 in cash expenses, purchased for cash a $42,000 piece of equipment that will be depreciated straight-line to zero over 4 years, and had $59,000 of sales of which 15% were cash sales. The firm also paid $13,500 in taxes and interest. The beginning cash balance was $11,300. How much must the firm borrow if it wishes to maintain a minimum cash balance of $10,000?

• A) $38,850
• B) $37,550
• C) $7,350
• D)$30,000

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Definitions:

Female Fetuses

Refers to unborn female offspring during their development in the uterus.

External Stimuli

Any objects or events in the environment that can elicit a response from our sensory systems.

Fetal Period

The stage of prenatal development that occurs from the end of the embryonic period to birth, characterized by rapid growth and maturation of bodily structures.

Major Organs

Essential organs in the body that perform vital functions necessary for survival, such as the heart, brain, liver, and kidneys.