Berman Company Is Preparing Its Budget for the Third Quarter

question 37

Multiple Choice

Berman Company is preparing its budget for the third quarter.Cash balance on July 31 was $34,000.Assume there is no minimum balance of cash required and no borrowing is undertaken.Additional budgeted data are provided here: $$\begin{array} { | l | r | r | r | } \hline & { \textbf { July } } & { \textbf { Aug } } &{ \textbf { Sep } } \\\hline \text { Cash collections } & \$ 53,000 & \$ 53,000 & \$ 54,000 \\\hline \text { Cash payments } & & & \\\hline \text { Purchases of direct materials } & 25,000 & 26,000 & 21,000 \\\hline \text { Operating expenses } & 34,000 & 26,000 & 30,000 \\\hline \text { Capital expenditures } & 12,000 & 13,000 & 11,000 \\\hline\end{array}$$ Calculate the projected balance of cash at the end of August.

• A)$31,000
• B)$118,000
• C)$35,000
• D)$22,000

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