California Products Company Has the Following Data as Part of Its

question 12

Multiple Choice

California Products Company has the following data as part of its budget for the 2^nd quarter:
$\begin{array}{|l|r|r|r|}\hline & {\text { Apr }} &{\text { May }} &{\text { Jun }} \\\hline \text { Cash collections } & \$ 30,000 & \$ 32,000 & \$ 36,000 \\\hline \text { Cash payments: } & & & \\\hline \text { Purchases of inventory } & 4,500 & 4,600 & 3,800 \\\hline \text { Operating expenses } & 7,200 & 7,600 & 8,000\\\hline \text { Capital expenditures } & 0 & 24,500 &5,200 \\\hline\end{array}$
The cash balance at April 1 is forecast to be $8,200.
-Assume that there will be no financing transactions or costs during the quarter. Based on the above information only, what will the cash balance be at June 30?

• A) $26,500
• B) $40,800
• C) $33,900
• D) $21,800

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Definitions:

Total Surplus

The sum of consumer surplus and producer surplus, representing the total net benefits to society from the production and consumption of goods or services.

Property Rights

Legal rights to use, control, and benefit from owning property, both tangible and intangible.

Economic Signals

Indicators or pieces of data that inform individuals or markets about the health of the economy or trends in economic activity, potentially guiding decision-making.

Efficiency

The extent to which time, effort, or cost is well used for the intended task or purpose.