Hilliard Company Budgeted the Following Transactions for April Year 2

question 137

Multiple Choice

Hilliard Company budgeted the following transactions for April Year 2: $$\begin{array} { l r } \text { Sales (75\% collected in month of sale) } & \$ 200,000 \\\text { Cash Operating Expenses } & 105,000 \\\text { Cash Purchases of Irvestrnents } & 75,000 \\\text { Cash Payment of Debt } & 15,000 \\\text { Depreciation on Operating Assets } & 12,000\end{array}$$ The beginning cash balance was $50,000.The company desires to have a $25,000 ending cash balance.The surplus (or shortage) of cash before considering any borrowings in April would be:

• A) $40,000 surplus.
• B) $40,000 shortage.
• C) $20,000 shortage.
• D) There is no cash surplus or shortage.

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Definitions:

Anarchic

Characterized by a state of disorder and absence of governmental authority or a structured society.

Extremism

Holding extreme political or religious views.

Socialism

An economic and political system where the means of production are owned and controlled by the state or public, aiming for equal distribution of wealth and resources.

Individualism

A concept that gives preference to individual freedoms, liberties, and rights.