Fulkron Manufacturing Provides the Following Data Excerpted from Its 3rd

question 23

Multiple Choice

Fulkron Manufacturing provides the following data excerpted from its 3rd quarter budget: $$\begin{array} { | l | r | r | r | } \hline & \text { Jul } & \text { Aug } & \text { Sep } \\\hline \text { Cash collections } & \$ 66,000 & \$ 42,000 & \$ 45,000 \\\hline \text { Cash payments: } & & & \\\hline \text { Purchases of inventory } & 50,000 & 48,000 & 25,000 \\\hline \text { Operating expenses } & 10,000 & 15,000 & 20,000 \\\hline \text { Capital expenditures } & 0 & 32,000 & 6,000 \\\hline\end{array}$$
-Refer to the table above,The cash balance on June 30 is projected to be $10,000. Based on the above data, calculate the shortfall the company is projected to have at the end of September.

• A) $43,000
• B) $28,000
• C) $35,000
• D) $40,000

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Definitions:

Bonds Payable

A long-term debt instrument issued by a company to investors, representing the amount it is obligated to pay back with interest.

Fair Value

A market-based measurement that reflects the amount for which an asset could be exchanged or a liability settled between knowledgeable, willing parties.

Pre-Tax Profit

The profit earned by a business before any tax is deducted.

Intercompany Sales

Transactions of goods or services between divisions or subsidiaries within the same parent company.