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

question 3

Multiple Choice

Diemans Corp.has provided a part of its budget for the second quarter: $$\begin{array} { | l | r | r | r | } \hline& \text { Apr } & \text { May } & \text { Jun } \\\hline \text { Cash collections } & \$ 40,000 & \$ 40,000 & \$ 52,000 \\\hline \text { Cash payments: } & & & \\\hline \text { Purchases of direct materials } & 4,500 & 5,000 & 7,000 \\\hline \text { Operating expenses } & 7,200 & 7,000 & 4,500 \\\hline \text { Capital expenditures } & 5,000 & 0 & 10,000 \\\hline \end{array}$$ 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)$95,800
• B)$54,000
• C)$37,300
• D)$65,300