Berman Company Is Preparing Its Budget for the Third Quarter

question 68

Multiple Choice

Berman Company is preparing its budget for the third quarter.Cash balance on July 31 was $34,000.Assume there is no minimum balance of cash required and no borrowing is undertaken.Additional budgeted data are provided here: $$\begin{array} { | l | r | r | r | } \hline &{ \text { July } } &{ \text { Aug } } & { \text { Sep } } \\\hline \text { Cash collections } & \$ 50,000 & \$ 54,000 & \$ 54,000 \\\hline \text { Cash payments } & & & \\\hline \text { Purchases of direct materials } & 24,000 & 22,000 & 18,000 \\\hline \text { Operating expenses } & 33,000 & 21,000 & 34,000 \\\hline \text { Capital expenditures } & 10,000 & 7000 & 16,000 \\\hline\end{array}$$ Calculate the projected balance of cash at the end of August.

• A) $16,000
• B) $104,000
• C) $45,000
• D) $38,000

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Definitions:

Neocortex

The most evolved part of the cerebral cortex that involves higher functions such as sensory perception, generation of motor commands, spatial reasoning, conscious thought, and in humans, language.

Gray Matter

The darker part of the brain and spinal cord consisting mainly of neuronal cell bodies, dendrites, and unmyelinated axons, and is involved in processing information.

White Matter

White matter refers to the pale-colored part of the central nervous system that consists mostly of myelinated nerve fibers and serves to transmit signals within the brain.

Frontal Lobe

The part of the brain located at the front of each cerebral hemisphere, responsible for higher cognitive functions like decision making, problem solving, and controlling behavior.