Zygot Biotech Company Is Budgeting for the 3rd Quarter, and Provides

question 62

Multiple Choice

Zygot Biotech Company is budgeting for the 3rd quarter, and provides the following data:
$\begin{array}{|l|r|r|r|}\hline& \text { Jul } & \text { Aug } & \text { Sep } \\\hline \text { Cash collections } & \$ 50,000 & \$ 40,000 & \$ 48,000 \\\hline \text { Cash payments: } & & & \\\hline \text { Purchases of inventory } & 31,000 & 22,000 & 18,000 \\\hline \text { Operating expenses } & 12,000 & 9,000 & 11,600 \\\hline \text { Capital expenditures } & 0 & 19,000 & 0 \\\hline\end{array}$

The cash balance at June 30 is projected to be $5,600. There are no financing transactions planned in the 3rd quarter.
- What is the projected cash balance at the end of July?

• A) $21,000
• B) $12,600
• C) $18,000
• D) $2,600

---

Definitions:

Population Growth

An increase in the number of individuals in a population.

Health Care

The maintenance or improvement of health via the prevention, diagnosis, treatment, recovery, or cure of disease, illness, injury, and other physical and mental impairments in people.

Food Allotments

Portions of land designated for the cultivation of fruit, vegetables, and sometimes livestock, often for personal consumption.

Penalties

Punishments imposed for breaking a law, rule, or contract.