A3+ Has Prepared Its 3rd Quarter Budget and Provided the Following

question 99

Multiple Choice

A3+ has prepared its 3rd quarter budget and provided the following data: The cash balance on June 30 is projected to be $4,000. The company has to maintain a minimum cash balance of $5,000 and is authorized to borrow at the end of each month to make up any shortfalls. It may borrow in increments of $5,000 and has to pay interest every month at an annual rate of 5%. All financing transactions are assumed to take place at the end of the month. The loan balance should be repaid in increments of $5,000 whenever there is surplus cash. Calculate the ending cash balance before financing for August.

• A)$9,000
• B)$5,000
• C)$3,000
• D)($8,000)

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Definitions:

GnRH Secretion

The release of Gonadotropin-Releasing Hormone, a peptide hormone responsible for triggering the pituitary gland to release gonadotropins.

FSH/LH Surges

A rapid increase in the levels of Follicle-Stimulating Hormone and Luteinizing Hormone, which triggers ovulation in females.

Ovulation

The release of an egg from one of the ovaries, a critical phase in the menstrual cycle involved in reproduction.

Menstruation

The monthly shedding of the lining of the uterus (endometrium) that results in bleeding from the vagina, part of the female reproductive cycle.