Uncle's Caps, a Merchandiser, Has Provided the Following Budgeted Amounts

question 63

Multiple Choice

Uncle's Caps, a merchandiser, has provided the following budgeted amounts for the next budget period. $\begin{array}{|l|r|}\hline \text { Balance of cash at the beginning } & \$ 30,000 \\\hline \text { Cash collections } & 680,000 \\\hline \text { Payments for: } & \\\hline \text { Purchase of inventory } &350,000 \\\hline \text { Selling and administrative expenses } & 70,400 \\\hline \text { Capital expenditures } &89,000\\\hline\end{array}$ A minimum cash balance of $250,000 is required to be maintained. The company can borrow in increments of $10,000 as and when required. Assume the company can borrow the needed funds at the end of the period. Calculate the ending cash balance for the budget period.

• A) $320,300
• B) $250,600
• C) $300,000
• D) $540,230