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

question 82

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 final cash balance at the end of August taking into consideration all the financing transactions.

• A)$6,958
• B)$5,254
• C)$7,100
• D)$4,320

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Definitions:

Human Relations Model

A management approach emphasizing the importance of interpersonal relationships and employee morale in achieving organizational objectives.

Social Planning Model

A strategic approach to addressing social issues and problems through organized, participatory planning processes.

Radical Social Change

Profound and significant alterations in the structure and dynamics of society, often aiming at a drastic transformation in societal values and norms.

Asset-Based

An approach focusing on the strengths and assets of individuals, communities, or organizations rather than their deficits or problems.