Duffy Corp The Cash Balance on April 1 Is $14,000

question 5

Multiple Choice

Duffy Corp. has provided a part of its budget for the second quarter: $$\begin{array} { | l | r | r | r | } \hline & { \text { Apr } } &{ \text { May } } & { \text { Jun } } \\\hline \text { Cash collections } & \$ 40,000 & \$ 40,000 & \$ 40,000 \\\hline \text { Cash payments: } & & & \\\hline \text { Purchases of direct materials } & 6000 & 7200 & 4500 \\\hline \text { Operating expenses } & 6000 & 7900 & 7000 \\\hline \text { Capital expenditures } & 0 & 10,000 & 0 \\\hline\end{array}$$ The cash balance on April 1 is $14,000. Assume that there will be no financing transactions or costs during the quarter. Calculate the projected cash balance at the end of April.

• A) $85,400
• B) $54,000
• C) $42,000
• D) $56,900