Nyree Company Is Preparing Its Budget for the Third Quarter

question 175

Multiple Choice

Nyree Company is preparing its budget for the third quarter.The cash balance on June 30 was $32,000.Additional budgeted data are provided here: $$\begin{array} { | l | r | r | r | } \hline & { \text { July } } & { \text { Aug } } & { \text { Sep } } \\\hline \text { Cash collections } & \$ 53,000 & \$ 51,000 & \$ 56,000 \\\hline \text { Cash payments } & & & \\\hline \text { Purchases of direct materials } & 20,000 & 20,000 & 20,000 \\\hline \text { Operating expenses } & 32,000 & 20,000 & 23,000 \\\hline \text { Capital expenditures } & 16,000 & 7000 & 9000 \\\hline\end{array}$$ What amount should be shown in the cash budget for the cash balance at the end of July?

• A)$36,000
• B)$17,000
• C)$121,000
• D)$85,000

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Definitions:

Product Market

The marketplace where final goods or services are offered to consumers, businesses, and the public.

Output Market

The output market is the marketplace in which goods and services produced by firms are sold or exchanged, contrasting with input markets where firms buy resources needed for production.

Labor

The physical and mental effort used to produce goods and services.

Normal Good

A good for which demand increases when consumer income rises, and decreases when consumer income falls.