Lyon CorpHas Provided a Part of Its Budget for the Second

question 120

Multiple Choice

Lyon Corp.has provided a part of its budget for the second quarter: $$\begin{array} { | l | r | r | r | } \hline &{ \text { Apr } } &{ \text { May } } & { \text { Jun } } \\\hline \text { Cash collections } & \$ 43,000 & \$ 45,000 & \$ 50,000 \\\hline \text { Cash payments: } & & & \\\hline \text { Purchases of direct materials } & 7200 & 5000 & 7000 \\\hline \text { Operating expenses } & 6000 & 7900 & 7000 \\\hline \text { Capital expenditures } & 4000 & 4600 & 20,000 \\\hline\end{array}$$ The cash balance on April 1 is $12,000.Assume that there will be no financing transactions or costs during the quarter.Calculate the projected cash balance at the end of June.

• A) $115,300
• B) $37,800
• C) $81,300
• D) $65,300

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Definitions:

PIMS Data

Database information from the Profit Impact of Market Strategy project, which analyzes business strategies and their impact on profitability.

BCG Matrix

A strategic business tool developed by the Boston Consulting Group to help organizations with portfolio management, analyzing business units or product lines based on their market growth rate and market share.

SWOT Analysis

A strategic planning tool used to identify and analyze the Strengths, Weaknesses, Opportunities, and Threats related to business competition or project planning.

Per-Unit Costs

The total expense incurred to produce, store, and sell one unit of a product or service, including material, labor, and overhead costs.