A3+ Has Prepared Its 3rd Quarter Budget and Provided the Following

question 43

Multiple Choice

A3+ has prepared its 3rd quarter budget and provided the following data: $\begin{array}{|l|r|r|r|} \hline& {\text { Jul }} &{\text { Aug }} &{\text { Sep }} \\\hline \text { Cash collections } & \$ 50,000 & \$ 40,000 & \$ 48,000 \\\hline \text { Cash payments: } & & & \\\hline \text { Purchases of inventory } & 31,000 & 22,000 & 18,000 \\\hline \text { Operating expenses } & 12,000 & 9,000 & 11,600 \\\hline \text { Capital expenditures } & 13,000 & 25,000 & 0\\\hline\end{array}$ The cash balance on June 30 is projected to be $4,000. The company has to maintain a minimum cash balance of $5,000 and is authorized to borrow at the end of each month to make up any shortfalls. It may borrow in increments of $5,000 and has to pay interest every month at an annual rate of 5%. All financing transactions are assumed to take place at the end of the month. The loan balance should be repaid in increments of $5,000 whenever there is surplus cash
- Calculate the ending cash balance before financing for August.

• A) $9,000
• B) $5,000
• C) $3,000
• D) ($8,000)

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Definitions:

Opposite Sex

A term typically used to describe individuals of the gender different from one's own, often in biological or social contexts.

Serial Monogamy

A pattern of engaging in successive monogamous romantic relationships, where an individual has only one partner at a time but multiple partners over their lifetime.

Exclusive Sexual Relationship

A romantic relationship where partners agree to engage in sexual activities only with each other, not allowing sexual activities outside the relationship.

Serial Polygamy

The practice of engaging in multiple marriages one after the other, where an individual legally marries, divorces, and then marries another partner.