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

question 13

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 amount of principal repayment at the end of September.

• A) $5,000
• B) $10,000
• C) $15,000
• D) $20,000

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Definitions:

Bisexual

Attracted to individuals of both genders.

Sexually Intimate

pertains to engaging in physical or emotional interactions that express closeness and love, typically involving sexual activities.

Sexual Identity

An individual's conception of themselves in relation to sexual attractions, behaviors, and membership in a community of others who share similar attractions.

Homosexual Orientation

The enduring pattern of emotional, romantic, and/or sexual attractions to individuals of the same sex.