Juno's Has Projected Its Q1 Sales at $46,000 and Its

question 35

Multiple Choice

Juno's has projected its Q1 sales at $46,000 and its Q2 sales at $48,000.Purchases equal 71 percent of the next quarter's sales.The accounts receivable period is 30 days and the accounts payable period is 45 days.At the beginning of Q1, the accounts receivable balance is $12,200 and the accounts payable balance is $14,800.The firm pays $1,500 a month in cash expenses and $400 a month in taxes.At the beginning Q1, the cash balance is $280 and the short-term loan balance is zero.The firm maintains a minimum cash balance of $250.Assume each month has 30 days.What is the cumulative cash surplus (deficit) at the end of the Q1, prior to any short-term borrowing?

• A)$9,210
• B)$9,684
• C)$8,633
• D)$8,880
• E)$9,157

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Definitions:

Economic Duress

This involves the use of unlawful pressure or threats by one party to compel another party to act in a way that is against their will or financial interest.

Subjective Evidence

Information or proof based on personal feelings, opinions, or tastes, rather than concrete facts.

Acquiesce

The reluctant acceptance or agreement without protest, often implicitly.

Peerless

Unique and having no equal; often used in legal contexts to describe something that has no identical counterpart.