Chatelain Company Is Preparing Its Budget for the Third Quarter

question 26

Multiple Choice

Chatelain Company is preparing its budget for the third quarter.The cash balance on June 30 was $32,000.Additional budgeted data are provided here: $$\begin{array} { | l | r | r | r | } \hline & { \text { Jul } } & { \text { Aug } } & { \text { Sep } } \\\hline \text { Cash collections } & \$ 53,000 & \$ 51,000 & \$ 53,000 \\\hline \text { Cash payments } & & & \\\hline \text { Purchases of direct materials } & 20,000 & 26,000 & 22,000 \\\hline \text { Operating expenses } & 23,000 & 33,000 & 22,000 \\\hline \text { Capital expenditures } & 14,000 & 8,000 & 15,000 \\\hline\end{array}$$ What amount should be shown in the cash budget for the cash balance at the end of July?

• A)-$25,000
• B)$28,000
• C)-$4,000
• D)$85,000

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Definitions:

Habituation

The psychological process by which an individual becomes accustomed to a stimulus and consequently responds less to it over time.

Discrimination

Unjust or prejudicial treatment of different categories of people, often based on race, age, sex, or disability.

Extinction

Eliminating the conditioned response.

Ivan Pavlov

A Russian physiologist best known for his work in classical conditioning, particularly his experiments with dogs that led to the concept of the conditioned reflex.