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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Definitions:

Mood

A temporary state of mind or feeling that can influence an individual's perception and behavior.

Surface Acting

A person suppresses their true feelings while displaying the organizationally desirable ones.

True Feelings

Genuine, unaltered emotions or sentiments held by an individual.

Emotional Intelligence

The ability to recognize, understand, and manage one's own emotions and those of others.