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

question 6

Multiple Choice

Duffy Corp.has provided a part of its budget for the second quarter: $$\begin{array} { | l | r | r | r | } \hline & { \text { Apr } } &{ \text { May } } &{ \text { Jun } } \\\hline \text { Cash collections } & \$ 40,000 & \$ 40,000 & \$ 52,000 \\\hline \text { Cash payments: } & & & \\\hline \text { Purchases of direct materials } & 4500 & 5000 & 7000 \\\hline \text { Operating expenses } & 7200 & 7000 & 4500 \\\hline \text { Capital expenditures } & 5000 & 0 & 10,000 \\\hline\end{array}$$ 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

Evaluate the implications of costing methods on performance evaluation and decision-making.

Identify circumstances under which selling price should cover variable costs and expenses.

Understand the principles of absorption costing and its implications on financial statements.

Grasp the concept of variable costing and its impact on business decision-making.

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