The Cannon Ball Has Projected Its First Quarter Sales at $11,200,second

question 46

Multiple Choice

The Cannon Ball has projected its first quarter sales at $11,200,second quarter sales at $10,900,and third quarter sales at $13,300.The firm's cost of goods sold is equal to 71 percent of the next quarter's sales.The accounts receivable period is 30 days and the accounts payable period is 60 days.At the beginning of the first quarter,the firm has an accounts receivable balance of $2,800 and an accounts payable balance of $6,300.The firm pays $1,500 a month in cash expenses and $200 a month in taxes.At the beginning of the first quarter,the cash balance is $530 and the short-term loan balance is zero.During the first quarter,the firm is planning on spending $2,600 for some new equipment.The firm maintains a minimum cash balance of $20.Assume each month has 30 days.What is the cumulative cash surplus (deficit) at the end of the first quarter,prior to any short-term borrowing?

• A)-$2,403
• B)-$1,983
• C)-$857
• D)-$837
• E)-$667

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Definitions:

Hypnotic State

A trance-like state of focused attention and increased suggestibility accompanied by deep relaxation, often induced by hypnotic induction.

Posthypnotic Suggestion

A suggestion, made during a hypnosis session, to be carried out after the subject is no longer hypnotized; used by some clinicians to help control undesired symptoms and behaviors.

Dissociation

A split in consciousness, which allows some thoughts and behaviors to occur simultaneously with others.

Hypnagogic Sensations

Experiences or hallucinations that occur in the transitional state from wakefulness to sleep.