Campz Company Began Operations on January 1 of the Current

question 26

Multiple Choice

Campz Company began operations on January 1 of the current year with a $20,000 cash balance. Fifty percent of sales are collected in the month of sale; 50% are collected in the month following sale. Similarly, 25% of purchases are paid in the month of purchase, and 75% are paid in the month following purchase. The following data apply to January and February: $\begin{array} { l r r } & \text { January } & \text { February } \\\text { Sales } & \$ 50,000 & \$ 50,000 \\\text { Purchases } & 20,000 & 25,000 \\\text { Operating expenses } & 5,000 & 7,000\end{array}$ If operating expenses are paid in the month incurred and are inclusive of monthly depreciation charges of $2,500, determine the Campz's cash balance at the end of February.

• A)$64,250
• B)$61,750.
• C)$69,750.
• D)$89,500.
• E)$95,000.

---

Definitions:

Perception of Pain

The subjective experience and interpretation of pain signals by the brain, influenced by various factors.

Hyposecretion

Hyposecretion is the decreased or insufficient secretion of hormones or other substances by a gland.

Thyroid Hormones

Hormones produced by the thyroid gland, crucial for regulation of metabolism, energy, and growth.

Weight Gain

An increase in body weight, which can result from an accumulation of body fat, muscle mass, or fluid retention.