Tadeo Corp The Cash Balance on April 1 Is $12,000

question 125

Multiple Choice

Tadeo Corp.has provided a part of its budget for the second quarter: $$\begin{array} { | l | r | r | r | } \hline & { \textbf { Apr } } &{ \textbf { May } } & { \textbf { Jun } } \\\hline \text { Cash collections } & \$ 40,000 & \$ 45,000 & \$ 42,000 \\\hline \text { Cash payments: } & & & \\\hline \text { Purchases of direct materials } & 7200 & 4500 & 4500 \\\hline \text { Operating expenses } & 7000 & 7000 & 7000 \\\hline \text { Capital expenditures } & 20,000 & 4000 & 20,000 \\\hline\end{array}$$ The cash balance on April 1 is $12,000.Assume that there will be no financing transactions or costs during the quarter.Calculate the projected cash balance at the end of May.

• A)$47,300
• B)$62,800
• C)$52,000
• D)$15,500