A Cash Budget by Quarters for the Carney Company Is

question 91

Multiple Choice

A cash budget by quarters for the Carney Company is given below (note that some data are missing) . Missing data amounts have been keyed with either question marks or lowercase letters (a, b, c, etc.) ; these lowercase letters will be referred to in the questions that follow. (It may be necessary to calculate a value for items where a question mark appears.) A zero amount is designated by a dash (-) . The company requires a minimum cash balance of at least $10,000 to start a quarter. All data are in thousands of dollars.

Carney Corporation
Cash Budget


-What is the cash balance at the beginning of the second quarter (item e) ,in thousands of dollars?

• A) $0.
• B) $7.
• C) $10.
• D) $14.

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Definitions:

Quantity

Quantity refers to the amount or number of a material or immaterial entity that is measured or quantifiable.

Average Variable Cost

Average Variable Cost is the total variable cost of production divided by the quantity of output produced, representing the variable cost per unit of output.

Variable Cost

Costs that are directly proportional to the level of output or production.

Quantity

The amount or number of a product or service that is available for use or sale.