The Cash Balance on April 1 Is $12,000

question 71

Multiple Choice

$\begin{array}{|l|r|r|r|} \hline& {\text { Apr }} &{\text { May }} &{\text { June }} \\\hline \text { Cash collections } & \$ 40,000 & \$ 45,000 & \$ 52,000 \\\hline \text { Cash payments: } & & & \\\hline \text { Purchases of inventory } & 4,500 & 7,200 & 4,500 \\\hline \text { Operating expenses } & 7,900 & 5,600 & 9,000 \\\hline \text { Capital expenditures } & 0 & 20,000 & 4,600 \\\hline\end{array}$ The cash balance on April 1 is $12,000. Assume that there will be no financing transactions or costs during the quarter.
-Diemans Corp. has provided a part of its budget for the 2^nd quarter: Calculate the cash balance at the end of May.

• A) $51,800
• B) $40,800
• C) $33,900
• D) $21,800

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