Tokyo Corp Subsequently,the Marketing Department Revised Its Figures for Cash Collections

question 58

Multiple Choice

Tokyo Corp.has prepared a preliminary cash budget for the third quarter as shown below: $$\begin{array} { | l | r | r | r | } \hline \text { Cash Budget } & { \text { Jul } } & { \text { Aug } } & { \text { Sep } } \\\hline \text { Beginning cash balance } & \$ 34,000 & \$ 13,000 & \$ 18,500 \\\hline \text { Plus: Cash collections } & \$ 54,000 & \$ 52,000 & \underline { 45,000 } \\\hline \text { Cash available } & 88,000 & \$ 65,000 & \$ 63,500 \\\hline \text { Less: Cash payments: } & & & \\\hline \text { Purchases of direct materials } & 34,000 & 8,000 & 11,000 \\\hline \text { Operating expenses } & 40,000 & 30,500 & 30,700 \\\hline \text { Capital expenditures } & \underline { 1,000 } & \underline { 8,000 } & \underline { 7,000 } \\\hline \text { Ending cash balance } & \$ 13,000 & \$ 18,500 & \$ 14,800 \\\hline\end{array}$$ Subsequently,the marketing department revised its figures for cash collections.New data are as follows: $53,000 in July,$55,000 in August,and $46,000 in September.Based on the new data,calculate the new projected cash balance at the end of August.

• A)$20,500
• B)$18,500
• C)$12,000
• D)$17,800

Understand the concept of convex preferences and how they relate to commodity bundles and consumer preferences.

Comprehend the principles of transitivity in consumer preferences and its implications on choice.

Grasp the calculation and significance of marginal rates of substitution in indifference curves.

Analyze how different pricing affects consumer choices and the marginal rate of substitution between goods.

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